EU’s Costa Voices Concern to China’s Li Over Expanded Mineral Export Controls

European Council President António Costa said on Monday that he had expressed deep concern to Chinese Premier Li Qiang over China’s decision to expand export controls on critical raw materials.

In a statement issued after their meeting on the sidelines of the Association of Southeast Asian Nations (ASEAN) summit in Malaysia, Costa also said the European Union hopes China will help bring an end to Russia’s war against Ukraine.

According to a readout from China’s state news agency Xinhua, Li said Beijing is ready to “enhance and deepen optimized and balanced trade cooperation” with the EU.

Beijing and Brussels, which have clashed in recent years over issues such as Chinese electric vehicles and European pork and dairy exports, have lately sought to find common ground amid growing uncertainty in global trade relations with Washington. However, China’s export controls on rare earth minerals — and its reluctance to act against Russia’s invasion of Ukraine — have remained key sticking points.

Li acknowledged that China-EU relations face both “challenges and opportunities,” urging the EU to provide a fair and non-discriminatory business environment for Chinese companies.

He added that both sides should “resolve current issues in China-EU economic and trade cooperation through dialogue, consultation, mutual understanding, and compromise.”

Last week, China’s Commerce Minister held discussions with the EU Trade Commissioner and the Dutch Economy Minister, addressing several trade disputes, including the ongoing standoff over Chinese-owned chipmaker Nexperia.

Dutch authorities seized control of Nexperia last month over national security concerns that its technology could be transferred to its Shanghai-listed parent company, Wingtech.

In retaliation, China — where most of Nexperia’s chips are packaged — halted exports of some finished products, raising concerns among European automakers that depend on the company’s components.