Germany’s top diplomat sees progress in China rare earth talks

German Foreign Minister Johann Wadephul claimed progress in efforts to secure supplies of rare earths from China, saying the government in Beijing had indicated it would be constructive in handling European orders for the metals crucial to electronics manufacturing.

Wadephul is on a two-day visit to the Chinese capital and said before the trip he planned to raise the issue of trade curbs, especially on rare earths, as well as “overcapacities” in electric vehicles and steel with senior officials there.

After a meeting Monday with Commerce Minister Wang Wentao, Wadephul posted a message on social media saying the talks were “very constructive” and the two nations are committed to “balanced economic relations.”

“At the same time, it is important to address imbalances and bridge differences, such as those related to market access and trade restrictions,” Wadephul, a member of Chancellor Friedrich Merz’s Christian Democrats, wrote. He also held separate meetings with his counterpart Wang Yi and Vice President Han Zheng, part of preparations for a visit to China by Merz expected sometime early next year.

Speaking later Monday to reporters, Wadephul said his Chinese interlocutors were encouraging German and European companies to apply for “general licenses” to import rare earths sourced in the Asian nation.

Beijing recently restricted exports of the minerals — critical to modern technology and military equipment — forcing global industry leaders to confront their excessive reliance on Chinese supplies.

“China has assured us that it will handle these requests very constructively and that there are no intentions to burden German companies with more problems,” Wadephul said. “I think that’s a good offer and encourage German firms to follow up on that.”

According to a statement from the commerce ministry in Beijing, Wang told Wadephul that China attaches importance to Germany’s concerns over export controls.

The government there has gradually applied a “general licensing” system for rare earths as part of an effort to keep global supply chains stable and smooth, Wang said, according to the statement.

Relations between Germany and China have been strained since Merz took office in May promising to take a tougher line with Beijing. In October, Wadephul abruptly canceled his first official trip to China, citing scheduling issues. Before that he had also criticized China’s “aggressive behavior” around Taiwan, irking Beijing.

Last month, Lars Klingbeil, Germany’s vice chancellor and finance minister, visited China and came away with unenforceable promises on the continued flow of rare earths.

That underscored how vulnerable Berlin now is to Beijing’s leverage and marked the shift in fortunes between two countries that once vied with one another for the title of the world’s biggest exporter, which China now claims.

The European Union plans to commit at least €3 billion ($3.5 billion) over the next year to help sever its dependence on China. The funding would come from a variety of sources, according to a draft proposal seen by Bloomberg News.

Before his trip, Wadephul said he’d broach the subject of Russia’s war on Ukraine and press Beijing to use its influence with Moscow “to ensure that Russia is finally ready for serious negotiations that respect Ukraine’s sovereignty.”

“My clear appeal to the Chinese side remains that it should make clear to Russia that it needs to come to the negotiating table now,” Wadephul told reporters Monday.

“If there’s one country in the world which has influence on Russia then it’s China,” he added. “I have articulated this expectation not only for Germany, but for the whole of Europe, and I think it was heard today in Beijing.”

(By Arne Delfs and Colum Murphy)