China extends an olive branch to Western auto giants over rare earth shortage

China has offered some relief to U.S. and European automakers amid rare earth export restrictions by creating a “green channel” to speed up export license approvals for EU firms.

This follows trade talks between Chinese and EU officials and comes after China imposed rare earth export curbs in response to U.S. tariffs.

The move also included granting licenses to suppliers of General Motors, Ford, and Stellantis, helping ease immediate production concerns, CNBC has reported.

However, industry experts remain cautious, noting bureaucratic hurdles and urging Europe to diversify supply chains, as Chinese actions stem from ongoing trade tensions.

Written by B.C. Begley