Description: Chinese Ministry of Commerce announced its decision to facilitate improved trade conditions for the European Union regarding the exports of their vast rare earth minerals reserves. The decision arrives in the midst of ongoing trade negotiations which happened last week between EU Trade Commissioner Maros Sefcovic and Chinese Commerce Minister Wang Wentao in Paris. Disputed trade issues have been reportedly discussed such as Chinese import of products from Europe such brandy in return for EU’s import of Chinese electric vehicles. China imposed a blockade on the country’s export of rare earth minerals and imposed strict allowances on obtaining special licenses in order for foreign companies to be eligible to buy the materials from the country.
Impact: Trade fraternization between China and Europe poses a serious risk for future recuperation of the transatlantic relationship between the US and EU which was considerably subdued by Trump’s tariff threats. The US’ deteriorating international and strategic position is being excessively exploited by strategic adversaries such as China and Russia which are continuously expanding their orbit of geopolitical influence and are forming long lasting codependent geostrategic ties through various means such as trade, security, infrastructure and defense. China and the EU are natural adversaries which have experienced rapprochement of bilateral ties especially on trade, which additionally contributes towards the global state of affairs incentivizing a multi polar constellation of global relations. China has adopted a moderate approach in forming strategic ties with sensitive regions such as Europe and a potential Chinese economic infiltration on the bloc’s economic market would most likely cause severe disruptions in the Union’s relations with its biggest ally, the US.