China has confirmed it will continue exporting rare earth minerals to Europe despite the looming expiration of the U.S.-China trade truce in January. He Yadong, spokesperson for China’s Commerce Ministry, indicated that China is prepared to keep approving rare earth export licenses to European countries regardless of whether the trade agreement with the U.S. is extended. This reassurance comes amid growing global concerns over supply chain disruptions tied to geopolitical tensions.

In October 2025, China had tightened restrictions on rare earth exports, including those with a minimal percentage of China-sourced materials, following expanded U.S. sanctions targeting Chinese companies and their affiliates. However, both nations agreed to suspend these restrictive measures for one year after President Xi Jinping and then-U.S. President Donald Trump met later that month. The trade pause was subsequently extended by two months to January 2026, raising questions about the future flow of these critical materials.

Recent diplomatic engagement between the European Union and China suggests a cooling of trade tensions between the two. Last week, EU Trade Commissioner Maroš Sefčovič met with Chinese Commerce Minister Wang Wentao in Beijing, resulting in China offering a "green channel" to facilitate ongoing rare earth exports to Europe. In exchange, China has requested European backing on imports related to dual-use sectors, signaling an effort to deepen economic cooperation despite broader geopolitical strains.

The European Commission is currently convening in Brussels to review the progress of trade talks with China, focusing on solidifying agreements that ensure stable resource supplies amid global uncertainties. The EU’s approach highlights a strategic effort to balance economic interests and geopolitical challenges while securing critical inputs needed for advanced technologies and green energy initiatives.