EU and China to Tackle Trade Tensions: Focus on Export Controls

The European Union and China are engaging in discussions on export control policies to ease trade tensions. After last week's meeting, China agreed to halt the expansion of rare earth export controls for a year, impacting European trade. Talks also covered the Chinese-owned Nexperia chipmaker issue.

The European Union and China will continue their dialogue on export control policies, the European Commission's trade chief announced on Saturday. This comes after EU and Chinese officials convened in Brussels in an effort to alleviate ongoing trade tensions.

A key point of negotiation was China's decision to expand its rare earth export controls. In a positive step, Beijing has consented to pause this expansion for a year, addressing one of the European Union's major concerns. EU Trade Commissioner Maros Sefcovic confirmed that this suspension would apply specifically to the EU.

Both sides expressed their commitment to ongoing engagement aimed at enhancing export control policy implementation. Additionally, discussions were anticipated on the subject of Nexperia, the Chinese-owned computer chipmaker recently taken over by the Dutch government. This situation has the potential to significantly impact semiconductor supplies for European carmakers.

(With inputs from agencies.)