Rare earth access is EU's priority at China summit

BRUSSELS/BEIJING, June 19 (Reuters): European Union leaders will use a summit with China next month to seek better access to Chinese rare earths and critical minerals, four sources familiar with the plans said, as the two sides tackle an array of tariff-related issues.
For years, China has had a near monopoly on rare earth production. It increased its export controls on the minerals, in demand from automakers, the defence industry and producers of renewable energy, following the tariffs announced by US President Donald Trump on April 2.
China also has grievances with the EU as the bloc has sought to protect its auto-making sector from cheaper Chinese imports, while China has imposed measures on France's brandy industry.
European Commission President Ursula von der Leyen and European Council President Antonio Costa will travel to Beijing for the summit on July 24-25.
It marks 50 years of EU-Chinese relations and will also take place two weeks after a deadline set by the United States for most trade partners to agree deals to avert higher tariffs.
As automakers have said China's export restrictions on rare earth alloys, mixtures and magnets could cause production delays, European leaders are expected to press their case with President Xi Jinping and Premier Li Qiang in separate meetings, said an EU official, who declined to be identified.
Two EU sources said the EU mission to China is solely focused on rare earths until the summit.
China's ministry of commerce in May said a "green channel" expediting rare earth licences for EU firms had been set up. However, one EU diplomat said that out of several hundred applications, no more than half had shown signs of being processed.
"The situation is improving, although the percentage of cleared licences does vary. Additionally, even once the licence is given, delays can still be seen in customs clearances," Adam Dunnett, secretary general of the European Chamber of Commerce in China, said.