European companies cannot easily obtain rare Chinese earths, explains the business lobby

China dominates the world industry to extract and refine strategic minerals, which gives it a vital lever effect in a trade war renewed this year with Washington.

Since April, Beijing has required licenses for certain exports, sending training effects in the world manufacturing sectors.

After a top tense in July organized by Beijing, the head of the European Union Ursula von der Leyen said that managers had accepted an improved mechanism for Chinese exports of rare earth minerals to the block.

But in its annual position document published on Wednesday, the European Union Chamber of Commerce in China said that “many companies – in particular small and medium -sized enterprises (SMEs) – still have significant disruptions of the supply chain”.

“No long-term lasting solution has been proposed,” he said, adding that the Chamber is “regular contact” with the Chinese authorities in this area.

“We have a number of members who are currently undergoing significant losses due to these bottlenecks,” Jens Eskellund president told journalists.

“We have raised more than 140 requests with our members and so far a fraction has been resolved,” he said.

“So that has not disappeared.”

In its latest publication, the lobby representing more than 1,600 member companies presented 1,141 recommendations to Chinese decision -makers, aimed at straightening various obstacles to which European companies in the country face.

The chief among these obstacles this year, said Eskellund, is a flickering Chinese economy that has struggled to set up a robust rebound since the end of the COVVI-19 pandemic.

Slow consumption, a manufacturing overabundance and prolonged misfortunes in the vast real estate sector of the country are among the main challenges which now enter into Beijing decision -makers and businesses.

In a sign of rooted misfortunes confronted with the second world economy, data published this week showed an increase in factory production and consumption in August at their lowest pace in about a year.

“I actually see greater convergence in terms of challenges Chinese companies have and the challenges that foreign companies have,” said Eskelund.

“The great enemy here-is the state of the domestic economy and the balance of supply,” he said.

“I think we completely see our eyes with the vast majority of Chinese companies.”