BRUSSELS, Belgium: The European Union has reached an understanding with China to stabilize the supply of rare earth materials and related products that Europe depends on for high-tech industries and military equipment, an EU official said this week.

EU Trade Commissioner Maroš Sefcovic met with China's Commerce Minister Wang Wentao in Brussels late last week to discuss Beijing's rare earth export restrictions, which were introduced in April and October, and EU rules on semiconductor exports. Olof Gill, spokesperson for the European Commission, the executive arm of the 27-nation EU, confirmed the meeting.

Similar to the United States, Europe has a large trade deficit with China, totaling around 300 billion euros (US$345 billion) last year. The EU also relies heavily on China for rare earth minerals and components used to make crucial products, including the magnets found in cars and home appliances.

Gill noted that the EU welcomed China's recent decision to suspend its rare earth export controls for 12 months. He said the EU is seeking a new, reliable structure for trade in these essential materials and is working with China on an export licensing system to ensure a steady supply to the bloc.

"This is an appropriate and responsible step in the context of ensuring stable global trade flows in a critically important area," Gill said.

Šefčovič added that Brussels and Beijing are still discussing additional trade-related actions.

"Both sides reaffirmed commitment to continue engagement on improving the implementation of export control policies," he posted on X.

China is the EU's second-largest partner in goods trade, behind only the United States. Trade between the EU and China is estimated to total about 2.3 billion euros ($2.7 billion) every day.

Both sides believe that maintaining stable trade relations is essential for their economies and the broader global market. They also recognize shared climate-related goals that benefit from cooperation rather than tension.