China has started granting export licences for rare earth elements and magnets to companies in the European Union, according to a report by the South China Morning Post, citing EU officials.

The move follows sustained pressure from European governments and firms, which have urged Beijing to ease export curbs introduced after U.S. President Donald Trump imposed reciprocal tariffs in April.

China’s Ministry of Commerce confirmed on Thursday that it is “accelerating approval of rare earth export licences” for EU firms “in accordance with the law,” state-run Global Times reported.

At a news briefing in Beijing, ministry spokesman He Yadong said China aims to resolve the rare earth issue before an upcoming China-EU leadership meeting in July. “Progress on the licensing process is being made,” he added.

Earlier this month, China’s JL MAG Rare-Earth – a major producer of high-performance magnets – said it had obtained export permits from national authorities to ship products to the U.S., Europe, and Southeast Asia.

China dominates global production of rare earth materials, supplying more than 80% of the world’s total. In May, rare earth exports rose 23% to 5,864.60 tonnes compared to the previous month. For the first five months of 2025, exports totalled 24,827 tonnes – a 2.3% year-on-year increase, according to official figures.

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