Germany attacks China’s rare-earth export policy: ‘Improper decisions are worsening trade relations’
— A new tension has emerged in trade relations between Germany and China. German Foreign Minister Johann Wadephul has made a strong statement about China’s new rare-earth export policy. He accused China of taking decisions “in isolation and without transparency” and said that these steps are damaging China’s credibility.
Questions raised on China’s rare-earth policy
China has made licenses mandatory for the export of rare-earth materials such as neodymium, dysprosium, and lanthanum, which are used in electric vehicles, wind turbines and high-tech gadgets, from April 2025. This means that now any company will have to take permission from the Chinese government before exporting these materials.
Johann Wadephul said at a press conference in Berlin,
“This new policy of China is creating uncertainty for trade and is damaging China’s image in Germany as a reliable partner.”
He was addressing a joint press meeting with China’s top diplomat Wang Yi, where strategic and economic issues between the two countries were discussed.
China’s clarification: ‘This is a matter of our sovereignty’
Responding to these criticisms, China’s Foreign Minister Wang Yi said,
“Rare-earth materials are used not only in civilian products but also in the defense sector. Therefore, we have the right to regulate their export. This is part of our sovereign rights.”
Wang also said that China is considering a plan to create a “green channel” for the EU (European Union) to ease the export process. But despite this, many European companies are worried that there may be disruption in the supply chain.
Dispute over Russia-Ukraine war
The German Foreign Minister also raised the issue of the war between Russia and Ukraine during the talks. He appealed to China not to give Russia military equipment or products that could increase its war capability.
Wang Yi reacted strongly to this and said,
“China is a supporter of peace and dialogue. We are not giving lethal weapons to any party. Our aim is to find stability and diplomatic solutions.”
However, Western countries believe that Beijing’s trade and diplomatic cooperation with Russia has helped Russia continue the war, even though China has formally declared itself neutral.
Economic relations in turmoil, but emphasis on continuing cooperation
Both leaders made it clear in their statements that despite differences, China and Germany should work together on global issues. Cooperation in areas like climate change, energy security, and technology was described as necessary.
Wadephul said,
“We have differences, but we have to work together to face global challenges. Solutions can be found only through dialogue and cooperation.”
Wang Yi’s European visit is not limited to Germany only. He is also going to France and Brussels, where he will meet European Union leaders. His goal is to present China as a stable and responsible partner compared to the US, especially when Donald Trump’s policies in the US are again in the news.
Conclusion
China’s rare-earth export policy has raised concerns among Europe’s big industries and governments. While China is citing its security and sovereignty, countries like Germany are considering it a threat to business confidence. It will be interesting to see in the coming weeks whether the Green Channel and diplomatic efforts will be able to heal this growing rift or not.