China's foreign minister dismisses European worries over rare earths

BERLIN (Reuters) -China's foreign minister downplayed European worries over rare earth exports restrictions on Thursday, saying it was standard practise to control dual-use goods exports but that Europe's needs could be met if applications were submitted.

Wang Yi was speaking in Berlin during a joint news conference with his German counterpart, on the second leg of a European tour seeking to lay the groundwork for a summit between EU and Chinese leaders later this month.

"Rare earths have not been, are not, and will not be a problem between China and Europe, or between China and Germany," Wang said. "If legal applications are submitted, Europe’s and Germany’s normal needs can be met."

China, which controls over 90% of global processing capacity for rare earths used in everything from automobiles to home appliances, had imposed restrictions in early April requiring exporters to obtain licenses from Beijing.

German Foreign Minister Johann Wadephul said the restrictions were causing "great concern" and tarnishing China's image in Germany as a reliable trade partner.

"We are on the path to finding sustainable joint solutions that will bring the necessary detente," he said.

But when Wang was asked if an agreement could be reached on restrictions ahead of the EU-China summit, he said: "This is not an issue between China and Europe... controlling dual-use goods is standard practice. China and Germany both have the right to do so."

The Chinese Ministry of Commerce already has a fast-track procedure in place to ensure that normal approvals are processed as quickly as possible, he added.

Wang came to Berlin from Brussels, where he met with EU officials including the bloc's high representative for foreign policy Kaja Kallas, who also urged Wang to end rare earth export restrictions.

Wadephul said the two foreign ministers also discussed Russia's invasion of Ukraine, Taiwan and the crisis in the Middle East.

"We believe China can play a constructive role in relation to Iran," he said.

(Reporting by Sarah Marsh and Andreas Rinke; Editing by Bill Berkrot)