China and EU Edge Closer to Trade Accord Amid Rare Earth and Brandy Concerns

China's commerce ministry announced progress in trade discussions with the EU concerning rare earth exports and brandy import duties. Following meetings in Paris, China aims to speed up the approval process for rare earth exports, while seeking compromises on tariffs and prices for electric vehicles in the EU market.

China has committed to fast-tracking the approval process for rare earth exports to EU companies, according to the Commerce Ministry's recent statement. Officials aim to reach a decision on EU brandy import duties by July 5, signaling potential resolutions to trade challenges that have tested Beijing-Brussels relations.

The discussions between Chinese Commerce Minister Wang Wentao and EU Trade Commissioner Maros Sefcovic in Paris this week are being hailed as progress. Previously, China's April decision to halt a broad range of rare earth exports severely disrupted global supply chains reliant on these materials.

Meanwhile, the Chinese Commerce Ministry indicated openness to further dialogue regarding rare earth export controls, recognizing rising demand from emerging sectors. Strains have also emerged from anti-dumping duties on EU brandy following retaliatory EU tariffs on Chinese EVs. China's announcement promises a resolution by early July, as French manufacturers eagerly await new price commitments.

(With inputs from agencies.)