MINEX Forum

Tag: Maros Sefcovic

  • EU and China Open Three-Month Trade Talks to Avert Trade War Over €360 Billion Import-Export Imbalance

    EU and China Open Three-Month Trade Talks to Avert Trade War Over €360 Billion Import-Export Imbalance

    The European Union and China have agreed to enter three months of formal trade consultations aimed at averting a trade war over the bloc’s annual €360 billion import-export imbalance, in their first joint statement on the relationship in seven years.

    EU Trade Commissioner Maroš Šefčovič met Chinese Commerce Minister Wang Wentao in Brussels on Monday, with both sides agreeing to open the consultations after weeks of threats and recriminations from Beijing over the prospect of EU measures to curb the flow of Chinese goods and components into Europe. “The EU and China as key trade partners, agree that the main objective of the TIC is to strengthen dialogue at ministerial level on trade and investment policies with the view to stabilise and make our bilateral relationship more balanced,” the two sides said in a joint statement, with the next meeting scheduled for October in Beijing.

    The talks come amid growing alarm in Brussels over what is now widely described as China Shock 2.0 — a threat to European industry and jobs extending well beyond electric vehicles and green technology. Eurostat reported on 15 June that Chinese exports to the EU now exceed imports from the bloc by approximately €1 billion per day. “We simply cannot afford to continue in the unsustainable growth of the trade deficit from the European perspective,” Šefčovič said. “We just didn’t want to wait too long. What is very important for us is engagement, it’s dialogue. But it has to bring tangible results, and we believe that we can achieve them by October.”

    Industry groups including the European Chambers of Commerce in China have warned that the scale of exports flowing into Europe risks “cannibalising” EU factories that remain heavily dependent on Chinese components.

    The consultations will cover four areas: rebalancing of trade and investment, export controls including those on rare earths, intellectual property rights, and World Trade Organization reforms. The two sides have also agreed to a joint monitoring mechanism extending beyond headline Eurostat and Chinese customs (GACC) figures, designed to identify sudden surges in exports or imports and trigger political discussions should either side move into an “amber or red” danger zone, according to Šefčovič.

    The European Commission has reportedly been mapping import and export data in fine detail over the past year, suggesting the three-month window will focus primarily on political dialogue rather than technical groundwork. The EU has adopted a cautious approach following the failure of its 2024 tariffs to meaningfully curb EV imports, with sources indicating quotas on hybrids and chemicals could be considered in the autumn.

  • Germany and France Reject US Metals Tariff Proposal as EU-US Trade Deal Ratification Hits Fresh Turbulence

    Germany and France Reject US Metals Tariff Proposal as EU-US Trade Deal Ratification Hits Fresh Turbulence

    The European Union’s largest economies have rejected a US attempt to resolve a long-running dispute over metals tariffs, injecting fresh uncertainty into the ratification of a transatlantic trade deal that has already faced repeated delays since it was first agreed last July.

    Germany and France voiced frustration in a closed meeting of EU envoys after the US recently changed how it calculates tariffs on hundreds of products containing steel and aluminium — a modification Washington presented as an olive branch to address European concerns. But after EU officials and industry groups crunched the numbers, the adjustment proved to fall well short of expectations. France and Germany noted that the tweak actually worsens the tariff situation for roughly half of the affected products, while VDMA, a major German industrial association, calculated that the average tariff rate for affected companies had risen from 21% to 26%.

    The European Commission said it is considering possible responses, though it has not yet specified what form these might take. EU Trade Commissioner Maroš Šefčovič raised the metals tariff issue during a visit to Washington last week but failed to achieve a breakthrough. Both sides have agreed to continue technical discussions, and the Commission told EU envoys that more fully implementing some of the bloc’s existing trade deal commitments could help unlock concessions from the US side.

    The metals dispute traces back to August last year, when Washington widened a 50% tariff on steel and aluminium to cover hundreds of additional products containing these metals — a move that drew accusations from Brussels that the US was already violating the spirit of the July agreement. Under that initial deal, the EU agreed to eliminate tariffs on US industrial goods in exchange for a 15% ceiling on most EU exports, a lopsided arrangement the bloc accepted to keep President Donald Trump engaged on Ukraine and avoid a broader trade rupture.

    The path to ratification has since been repeatedly disrupted. EU lawmakers paused the process twice — first after Trump threatened to take Greenland, and again after the US Supreme Court invalidated Washington’s global tariff regime. More recently both sides had expressed a renewed desire to conclude ratification, with EU member states and lawmakers simultaneously negotiating amendments including an expiration clause and stronger safeguards for European industries — provisions the Commission has warned could derail the accord entirely.

  • EU Trade Chief Vows to Fight “Tooth and Nail” for European Jobs as China Threatens Retaliation Over Industrial Policy

    EU Trade Chief Vows to Fight “Tooth and Nail” for European Jobs as China Threatens Retaliation Over Industrial Policy

    The European Union will not retreat from its industrial sovereignty agenda despite Chinese threats of retaliation, EU Trade Commissioner Maroš Šefčovič has declared, issuing one of his most combative statements yet on the deteriorating state of EU-China trade relations.

    Speaking exclusively to Euronews, Šefčovič said the bloc would “always” defend the interests of its companies and workers. “We will fight tooth and nail for every European job, for every European company, for every open sector, if we see they are treated unfairly,” he said, responding to Beijing’s threat of countermeasures over the EU’s Industrial Acceleration Act and its Cybersecurity Act — two pieces of legislation China has accused of discriminating against its companies.

    Relations between Brussels and Beijing have deteriorated sharply over the past year. China has tightened export controls on rare earths vital to Europe’s clean technology and defence industries and restricted semiconductor chips essential to the automotive sector, intensifying pressure on already strained supply chains. In response, the EU has pressed ahead with legislation tightening market access for foreign companies and potentially restricting Chinese telecoms firms’ presence across the bloc — prompting Beijing to warn that the EU should not underestimate China’s “firm resolve” to safeguard its interests.

    Šefčovič rejected characterisations of the situation as a looming trade war but was unequivocal that Brussels would not operate under pressure. “We never threaten our partners, and we certainly don’t do it through the media,” he said. “What we need is strategic patience and a great deal of courage.” He noted that a trade conflict is easy to start but difficult to exit — a warning he appeared to direct as much at Beijing as at domestic audiences.

    At the heart of the EU’s grievances is a trade deficit with China that reached €359.3 billion in 2025 — a level Šefčovič described as “simply unsustainable” and one showing no signs of improvement despite repeated EU calls for rebalancing. Brussels is also growing increasingly concerned that Chinese exports being shut out of the US market by higher tariffs are being redirected toward Europe, compounding existing overcapacity concerns.

    Šefčovič said he had invited China’s foreign minister to Brussels for a comprehensive assessment of the current state of relations, stressing that what he wants is “constructive engagement” rather than escalation. He defended the EU’s industrial policy ambitions by pointing to equivalent frameworks elsewhere: “There are very strong industrial policies in China. You have the same in the US, in Canada, in Japan and in Korea. So nobody should be surprised if the European Union responds in kind.”

  • EU and US Sign Critical Minerals Partnership and Action Plan Covering Full Supply Chain From Exploration to Recycling

    EU and US Sign Critical Minerals Partnership and Action Plan Covering Full Supply Chain From Exploration to Recycling

    The European Union and the United States have formalised a strategic partnership on critical minerals, signing a Memorandum of Understanding and agreeing a joint Critical Minerals Action Plan in Washington DC that commits both sides to coordinated action across the full mineral value chain — from exploration and extraction through processing, refining, recycling and recovery.

    The MoU was signed by EU Trade and Economic Security Commissioner Maroš Šefčovič and US Secretary of State Marco Rubio, while the accompanying Action Plan was set out by Šefčovič and US Trade Representative Jamieson Greer. Together, the two instruments formalise a partnership that traces its origins to commitments made at a Critical Minerals Ministerial meeting held in Washington on 4 February 2026, alongside Japan, and to a joint EU-US statement issued in August 2025.

    The MoU covers bilateral cooperation across the entire supply chain and encompasses support for innovation, investment and geological mapping, as well as both supply-side and demand-side measures. The Action Plan goes further, setting out a framework for exploring a broad range of trade policy instruments designed to reinforce coordinated international action. These include border-adjusted price floors — a mechanism that has been under active discussion among allied governments as a tool to protect non-Chinese producers from market distortion — alongside standards-based markets, price gap subsidies and offtake agreements.

    Cooperation under the Action Plan is also expected to extend to the development of common standards for mining, processing and recycling; joint research and innovation programmes; stockpiling strategies; and mechanisms for rapid response to supply disruptions. Both sides intend to advance the critical minerals agenda through relevant international forums including the G7 and the Forum on Resource Geostrategic Engagement, known as FORGE, with the Action Plan explicitly paving the way toward a possible plurilateral trade initiative with a wider group of like-minded partners.

    The agreement reflects the convergence of European and American concerns about the fragility of critical mineral supply chains and the dominant position China holds across multiple points of the value chain — from mining through processing and refining — for minerals essential to the energy transition, advanced manufacturing and defence.

  • EU Sets Up “Special Channel” with China to Secure Rare Earth Supply

    EU Sets Up “Special Channel” with China to Secure Rare Earth Supply

    The European Union has established a special communication channel with Chinese authorities to ensure the continuous flow of rare earth materials essential for European industries, EU Trade Commissioner Maros Sefcovic said on Wednesday.

    The move comes after China imposed export controls on rare earths earlier this year, triggering alarm in Europe over possible disruptions to the supply of critical materials used in electric vehicles, wind turbines, and permanent magnets — key components for clean energy and high-tech manufacturing.

    Speaking at the 2025 GCC–EU Business Forum in Kuwait, Sefcovic told Reuters that he had held multiple discussions with Chinese Commerce Minister Wang Wentao, emphasizing that bureaucratic delays in export procedures could have a “very negative impact on production and manufacturing in the EU.”

    Fast-Track Cooperation Mechanism

    Brussels and Beijing have agreed to prioritize export permit applications from European companies. Through the newly established channel, EU and Chinese officials are jointly reviewing and fast-tracking export approvals for rare earth shipments.

    According to Sefcovic, European companies have submitted about 2,000 applications since the controls were introduced, with just over half already approved. He said the EU was urging China to accelerate the remaining cases while pursuing broader supply chain diversification.

    “We continue to press for faster processing,” Sefcovic said, adding that Europe is simultaneously developing alternative rare earth sources, including new mining and magnet production projects in Estonia.

    Wider Context

    The announcement follows months of tension between Europe and Beijing after China’s export restrictions on rare earths and related technologies. Although subsequent deals with the EU and the United States helped ease the immediate supply squeeze, both regions have intensified efforts to reduce dependence on Chinese critical materials.

    On Tuesday, the European Commission confirmed that EU and Chinese officials discussed introducing general export licenses to simplify rare earth shipments — similar to arrangements reportedly secured by the United States.

  • EU to Establish Critical Raw Materials Center for Joint Purchasing and Stockpiling Amid Rising Supply Risks

    EU to Establish Critical Raw Materials Center for Joint Purchasing and Stockpiling Amid Rising Supply Risks

    The European Union will set up a Critical Raw Materials Center to coordinate the joint purchasing and stockpiling of key minerals vital to industries such as defense, automotive manufacturing, and clean energy, under a new 2026 work plan unveiled by the European Commission on Tuesday.

    The initiative, described as part of Europe’s quest for “industrial sovereignty,” seeks to safeguard supplies of critical minerals and metals amid intensifying global competition and geopolitical uncertainty.

    “Our regional and global order is being redrawn. And Europe must fight for its place in a world where some major powers are either ambivalent or hostile to us,” said European Commission President Ursula von der Leyen in an address to the European Parliament.

    The planned Critical Raw Materials Center will monitor market flows, coordinate collective EU purchases, and maintain strategic reserves of essential resources — including rare earths, lithium, cobalt, and nickel — ensuring supply stability for strategic industries.

    The plan follows China’s announcement earlier this month of expanded export controls on rare-earth magnets and raw materials, citing national security concerns. Those restrictions have triggered alarm across global supply chains and prompted urgent discussions between EU trade chief Maroš Šefčovič and his Chinese counterpart to seek a path forward.

    The move also builds on the EU’s 2023 Critical Raw Materials Act, which laid the foundation for diversifying mineral imports away from China and expanding domestic extraction, refining, and recycling capacity.

    Von der Leyen said the bloc must ensure autonomy not only in raw materials but also in “critical technologies that will shape the economy of tomorrow”, citing batteries, cloud computing, artificial intelligence, and advanced materials.

    As part of the broader 2026 European Work Plan, the Commission outlined six strategic pillars:

    Sustainable prosperity and competitiveness

    Defense and security

    Social model and innovation

    Quality of life

    Democracy and rule of law

    Global engagement

    Other measures include a new “European Product Act”, updates to public procurement rules, taxation and energy deregulation, and a European anti-corruption initiative. A new action plan against cyberbullying will also be introduced.

    In parallel, the EU announced plans to withdraw 25 stalled legislative proposals in 2026 to reduce bureaucratic burdens and respond to business pressure for faster, more flexible regulatory frameworks.

    Context: China’s Dominance and Europe’s Strategic Response
    China currently controls the majority of global refining capacity for rare earths and other critical minerals. The new export restrictions — and the risk of further escalation — have pushed Europe to accelerate diversification efforts through partnerships with countries such as Kazakhstan, Canada, and Australia.

    By pooling resources and centralizing strategic oversight, Brussels hopes to shield European industries from supply shocks while strengthening its negotiating position in a more fragmented global economy.

  • EU Seeks G7 Coordination to Counter China’s Expanded Rare Earth Export Controls

    EU Seeks G7 Coordination to Counter China’s Expanded Rare Earth Export Controls

    The European Union is working with the United States and other G7 partners to coordinate a response to China’s expanded export controls on rare earth minerals, senior EU trade officials said on Tuesday.

    Beijing, which dominates global production and refining of rare earths, tightened restrictions last week, adding more elements and refining technologies to its control list, along with new scrutiny for semiconductor-related exports. The move comes ahead of planned talks between Presidents Donald Trump and Xi Jinping, raising fresh concerns about supply security for key Western industries.

    European Trade Commissioner Maros Sefcovic described China’s measures as “unjustified” and said EU ministers gathered in Denmark had identified the issue as a “critical concern.”

    Previous Chinese export restrictions earlier this year caused widespread supply shortages, particularly for automakers, before temporary relief came through emergency supply agreements between Europe and the US.

    Sefcovic confirmed that G7 finance ministers are expected to discuss coordinated options on Wednesday.

    “We brainstormed yesterday that it would be advisable after this first discussion to have a G7 video call pretty soon,” he said, adding that he had already spoken with US Commerce Secretary Howard Lutnick on the issue.

    Sefcovic is also scheduled to hold talks with his Chinese counterpart early next week.

    Danish Foreign Minister Lars Rasmussen emphasized the need for a united and firm EU response, calling for solidarity with Washington.

    “We must be tough but realistic. This is an area of common interest with our friends in the US. If we stand together, we can better pressure China to act fairly,” Rasmussen said.

    While Trump’s response included a threat of 100% tariffs on Chinese imports, triggering a brief Wall Street sell-off, Rasmussen cautioned against escalation, advocating instead for “frank and open discussions” with Beijing.

    Sefcovic added that coordination among G7 nations could include joint efforts to diversify supply chains, accelerating critical mineral extraction and processing projects outside China.

    “Of course these projects take time,” he said, “but with this signal from China, it’s clear we must focus on speeding them up as much as possible.”

  • EU to Launch Critical Minerals Initiative for Green Transition

    EU to Launch Critical Minerals Initiative for Green Transition

    The European Commission is poised to issue calls for projects aimed at enhancing the EU’s supply of critical minerals within the coming days, according to a senior official. This initiative is part of a broader strategy to secure essential materials like lithium and copper, which are vital for the EU’s green and digital transformations. The EU Critical Raw Materials Act, which becomes effective on May 23, is at the heart of this effort, ensuring that the EU can independently produce electric vehicles and wind turbines, thereby reducing reliance on China.

    Maros Sefcovic, the Commission Vice-President, announced that the first meeting of the board overseeing the act, comprising EU member representatives, will be convened soon. “Shortly after this meeting, we aim to launch the first call for strategic projects,” Sefcovic stated during the EU Raw Materials Summit in Brussels.

    Projects focused on processing, recycling, or mining that are deemed strategic will benefit from an expedited permitting process, receiving approvals within 15-27 months, significantly faster than the usual timeframe. Sweden’s Eurobattery Minerals AB has already indicated its intention to apply for a strategic project designation for a mine in Finland.

    Additionally, the Commission is planning joint EU purchases of approximately 30 critical materials, leveraging its experience with joint gas purchases. Sefcovic emphasized the need for swift action, although he acknowledged the necessity of garnering support from EU member states, which had been a challenge with gas.

    The existing platform for gas procurement could serve as a model for these mineral purchases, despite the increased complexity of managing multiple materials. This system is expected to enhance the EU’s ability to forecast future demand more accurately. The Commission is also exploring the potential for stockpiling key minerals, drawing inspiration from Japan’s approach to rare earth reserves.

  • EU to Launch Calls for Critical Minerals Projects and Joint Purchases

    EU to Launch Calls for Critical Minerals Projects and Joint Purchases

    The European Commission is set to initiate calls for projects aimed at improving the EU’s supply of critical minerals, with plans to start joint EU purchases similar to its existing gas scheme, announced a senior commissioner on Wednesday. The EU Critical Raw Materials Act, which ensures a stable supply of essential minerals like lithium and copper for the EU’s green and digital transitions, comes into effect on May 23. This act is crucial for the production of electric vehicles and wind turbines, reducing the bloc’s reliance on China.

    Commission Vice-President Maros Sefcovic mentioned that the EU executive would soon hold the inaugural meeting of a board overseeing the act. “Within days after that… we would like to launch the first call for strategic projects,” Sefcovic stated at the EU Raw Materials Summit in Brussels. Strategic projects in processing, recycling, or mining will benefit from expedited permits within 15-27 months. Eurobattery Minerals AB from Sweden has expressed intentions to apply for a strategic mine in Finland.

    Additionally, Sefcovic revealed that the Commission is drafting plans for joint purchases of around 30 critical materials, leveraging its gas purchase scheme experience. The EU executive aims to facilitate connections between global suppliers and EU buyers, hoping to launch the scheme promptly despite potential hesitations from member states. The existing gas purchase platform could serve as a model, though acquiring diverse critical minerals presents more complexity. The Commission is also exploring stockpiling key minerals, inspired by Japan’s approach to rare earths.