China expands the olive branch to the Western car giants

It seems that China has provided us with European car giants after industry groups after industry groups to caution An increase in production threats to a rare land shortage.

Chinese Ministry of Commerce on Saturday He said He was ready to create the so -called “Green Channel” for export licensing applications for acceleration for the approval of European Union companies.

A spokesman for the Ministry of Commerce said that Wang expressed his hope that the European Union will take “mutual steps” and adopt measures to enhance trade compatible with high -tech products with China.

This achievement comes after the commercial talks between Chinese Trade Minister Wang Windu and European Union Trade Commissioner Marus Sevkovic in Paris, France last week.

Beijing has also granted rare ground licenses to United States suppliers for auto giants General Motorsand Ford And pocket maker Stelantisand Reuters mentioned Friday, quoting unnamed sources. The report said that the Chinese Ministry of Commerce did not respond to a fax request for comment. CNBC GM, Ford and Stelantis called.

In early April, the Chinese Ministry of Commerce imposed export restrictions on many rare and magnets used on a large scale in the automotive, defense and energy sectors. The restrictions were part of the response to the American president Donald TrumpIncreased customs tariffs on Beijing products.

Some of the rare infected terrestrial elements were critical ingredients for the production of both combustion engines and electric cars.

Maximilian Potk, CEO and member of the Board of Directors of the German Chamber of Commerce in China, said that the weekend announcement was definitely good news for European companies, but indicated that it is still unclear whether the fast channel applies to large companies or sectors on a larger scale.

“It is a huge bureaucratic monster they created and I am not sure whether they can now accelerate the process and give licenses to those who need it,” Bottec told CNBC.Europe early edition” on monday.

Potk said that the major car manufacturers in Europe will welcome the penetration of the diplomat, while stressing the need of the European bloc to improve the diversification of the supply chain.

“We have set everything ready that China is ready even to draw this card because this is the measurement of revenge towards the definitions carried out by the United States, right? We, as European companies, we are now in the fire of this commercial escalation, and this is not the place where we want to be.”

“It is not just enough to announce this, but they must show it,” he added.

China is Undisputed From the critical metal supply chain, accounting For about 60 % of the world’s mineral production and rare ground materials. Former US officials to caution This dominance constitutes a strategic challenge among the axis of the most sustainable energy sources.

Some analysts compare pressure at the level of industry on the rare land magnet supplies to Global connectors crisis This disrupts the production of cars during the Korona virus pandemic.

Speaking to CNBC before China announced plans to accelerate the approval of rare land exports to the European Union, the European Automobile Manufacturers Association (ACEA) said that some of its members are at risk of interruption of production as soon as possible next month.

A car pressure group, which represents the likes of stellantis, Renaultand Ferrariand Volkswagen And Volvo, the rare land export licenses by the Chinese Ministry of Commerce were taking a lot of treatment since the appearance of April’s restrictions.

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He added: “We gradually reach a very critical moment, as these shares are now being exhausted, and we will see the production stop.”

Follow a separate ACEA warning Freed update From the European Association of Motors.

Last week, the group said that many suppliers and production lines have already been closed due to the recent export restrictions taken by Beijing, with another interruption with the draining of rare land stocks in the coming weeks.

Japanese auto industry company Suzuki MotorHowever, it is suspended for its rapid car due to the rare land restrictions in China, Reuters I mentioned Thursday, quoting two unpopular sources. A SUZUKI MOTOR spokesman did not respond to a request for comment when calling him by CNBC.

It is expected that the demand for rare land and critical minerals will be required Grow In the coming years like Clean energy transmission captures a pace.