Germany criticises China curbs on rare-earth exports

Germany criticises China curbs on rare-earth exports
by AFP Staff Writers
Berlin (AFP) July 3, 2025

Germany's foreign minister Thursday criticised China over its "unilateral and often not very transparent" export restrictions on rare earths, warning they were harming ties between the world's third- and second-biggest economies.

Beijing has since April required licences to export the strategic materials, which are used in a wide variety of products from electric car batteries to hard drives.

Foreign Minister Johann Wadephul, speaking at a news conference alongside Chinese counterpart Wang Yi in Berlin, said the curbs were of "great concern" to German businesses.

"This uncertainty is damaging our trade relations and also damaging China's image in Germany as a reliable trading partner overall," he said.

Wang, who is on a tour of Europe, insisted that rare earths were "dual-use goods" with civilian and military applications, which meant their export needed to be controlled, adding: "This is part of our sovereignty."

China, which is seeking to improve relations with the European Union as a counterweight to the United States, has proposed establishing a "green channel" to ease the export of rare earths to the bloc, its commerce ministry said last month.

The curbs have caused concern among businesses worldwide as China accounts for almost two-thirds of rare earth mining production and 92 percent of global refined output, according to the International Energy Agency.

Wadephul also expressed concern about Beijing's links to Russia's war in Ukraine, cautioning against the "delivery of goods that are also important for the war effort".

But Wang responded: "We are striving for peace and negotiation. We are not supplying lethal weapons to the parties involved in the conflict."

- Ukraine war tensions -

China has portrayed itself as a neutral party in Russia's more than three-year war with Ukraine.

But Western governments say Beijing's close ties have given Moscow crucial economic and diplomatic support, including by failing to stop the flow of goods that can be used by Russia in its offensive.

Beijing and Berlin have long had close ties, particularly on the economic front, with the Chinese market becoming a key destination for Germany's industrial titans.

Thursday's visit marked Wang's first trip to Germany since a conservative-led government under Chancellor Friedrich Merz took power in May.

During his Europe trip, which also takes him to France and EU headquarters in Brussels, Wang is seeking to present China as a steady counterweight to the United States under President Donald Trump.

Wadephul also emphasised cooperation with China was important, saying Berlin and Berlin had to cooperate to try to solve the many "international challenges" they were facing.

US, Japan, India, Australia pledge mineral cooperation on China jitters
Washington (AFP) July 2, 2025 - The United States, Japan, India and Australia pledged Tuesday to work together to ensure a stable supply of critical minerals, as worries grow over China's dominance in resources vital to new technologies.

US Secretary of State Marco Rubio welcomed his counterparts from the so-called "Quad" to Washington in a shift of focus to Asia, after spending much of his first six months on the wars in Ukraine and the Middle East and on President Donald Trump's domestic priorities such as migration.

The four countries said in a joint statement that they were establishing the Quad Critical Minerals Initiative, aimed at "collaborating on securing and diversifying" supply chains.

They offered little detail but made clear the goal was to reduce reliance on China, which has used restrictions as leverage as the United States in turn curbs its access to semiconductors and as Trump threatens steep tariffs -- including on Quad countries.

"Reliance on any one country for processing and refining critical minerals and derivative goods production exposes our industries to economic coercion, price manipulation and supply chain disruptions," the statement said.

The ministers were careful not to mention China by name but voiced "serious concerns regarding dangerous and provocative actions" in the South China Sea and East China Sea that "threaten peace and stability in the region."

China holds major reserves of several key minerals including the vast majority of the world's graphite, which is crucial for electric vehicles.

In brief remarks alongside the other ministers, Rubio said he has "personally been very focused" on diversifying supply chains and wanted "real progress."

- US refocus on Asia -

The four-way partnership was first conceived by late Japanese prime minister Shinzo Abe, who saw an alliance of democracies surrounding China -- which has repeatedly alleged that the Quad is a way to contain it.

Rubio had welcomed the Quad foreign ministers on January 21 in his first meeting after Trump's inauguration, seen as a sign the new administration would prioritize engagement with like-minded countries to counter China.

But to the surprise of many, China has not topped the early agenda of Trump, who has spoken respectfully about his counterpart Xi Jinping and reached a truce with Beijing to avoid a wider trade war between the world's two largest economies.

Trump is expected to travel to India later this year for a Quad summit.

Both the Indian and Japanese foreign ministers said that they wanted the Quad to focus on a "free and open Indo-Pacific" -- a phrasing that is a veiled allusion to opposing Chinese dominance in Asia.

"It is essential that nations of the Indo-Pacific have the freedom of choice, so essential to make right decisions on development and security," Indian Foreign Minister Subrahmanyam Jaishankar said.

At Jaishankar's urging, the Quad condemned a May attack on the Indian side of Kashmir that killed mostly Hindu civilians and called for "the perpetrators, organizers and financiers of this reprehensible act to be brought to justice without any delay."

India in May launched air strikes in Pakistan, which it blamed for the attack. Pakistan denied responsibility and responded with its own attacks on the Indian military.

In a key concern for Japan, the Quad condemned North Korea for its "destabilizing launches" of missiles and insisted on its "complete denuclearization."

Trump, in one of the most startling moves of his first term, met with North Korea's reclusive leader Kim Jong Un, helping ease tensions but producing no lasting agreement.

Despite common ground on China, Quad members have differed on other hotspots, with the joint statement not mentioning Ukraine or Iran.

India has maintained its long relationship with Russia despite the invasion of Ukraine, while both India and Japan also have historically enjoyed cordial ties with Iran.