EU-US Nearing Critical Minerals Agreement to Reduce Reliance on China

According to Bloomberg, citing an "action plan," this potential agreement will include incentives such as minimum price guarantees, which could benefit non-Chinese suppliers. The report also states that Europe and the US will cooperate on standard-setting, investment, and joint planning, while strengthening coordinated responses to any supply disruptions that may be caused by countries like China. EU Trade Commissioner Maros Sefcovic stated in March during the WTO ministerial meeting in Cameroon that he had a "very positive" meeting with US Trade Representative Jamieson Greer. Both sides agreed to further promote cooperation on critical minerals and discuss tariff issues. According to a non-binding memorandum of understanding cited by Bloomberg, the US-EU agreement will cover "critical minerals, as well as the entire value chain and life cycle management, including exploration, extraction, processing, refining, recycling, and recovery." The US is actively seeking channels to secure critical mineral reserves, particularly in the rare earth supply chain currently dominated by Chinese companies, to reduce its dependence on China. (Compiled by Liu Shuqin)