Highlights

• China Daily's response to Macron's op-ed strategically positions rare earth export licensing as proof of cooperation while seeking to prevent EU trade restrictions and maintain stable demand for Chinese exports worth $748.4 billion annually.
• Beijing is calibrating—not abandoning—export controls, using discretionary licensing of critical materials to European manufacturers as leverage to keep the EU from adopting U.S.-style containment policies.
• The editorial reveals China's domestic rebalancing challenge: while officially promoting internal consumption growth, Beijing still depends on export markets, making downstream access as strategically vital as upstream control.

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A China Daily editorial (opens in a new tab) responding to French President Emmanuel Macron’s Financial Times op-ed presents itself as a call for cooperative dialogue between China and the European Union. Read plainly, it is a diplomatic appeal. Read carefully, it is also a strategic argument against trade restrictions at a moment when China wants stable external demand and predictable downstream absorption—especially in clean energy and critical materials.

What China Is Actually Saying

China Daily frames Macron as a constructive voice resisting EU tariffs and quotas, warning that punitive trade tools are an “uncooperative answer” that could trigger a damaging dispute. The editorial repeatedly shifts responsibility for Europe’s trade deficit back onto Brussels, arguing that EU “de-risking,” export controls, and restrictions on Chinese investment—particularly in advanced technology—are self-inflicted wounds.

China highlights that EU–China trade reached 5.37 trillion yuan ($748.4 billion) in the first 11 months of the year, up 5.4% year-on-year, crediting China’s momentum in “new energy,” the digital economy, and AI-linked sectors. That framing aligns with what REEx has tracked: China’s industrial system still needs profitable demand growth to absorb output at better margins.

The Rare Earth Signal—Quiet but Significant

The most concrete claim comes late in the editorial: China says it has recently issued export licenses for rare earths to Europe, framing this as proof of its commitment to global supply-chain stability. The messaging also reassures European manufacturers—autos, wind, electronics—that Beijing can loosen the valve when broader trade objectives require it.

For Western audiences, the practical reality remains: China is not abandoning export controls; it is calibrating them. Licensing is discretionary and reversible, and the editorial reads as an attempt to keep Europe from drifting toward a U.S.-style containment posture.

Domestic Demand: The Tell

The editorial closes by pointing to China’s Central Economic Work Conference, where leaders pledged to strengthen the domestic market, boost consumption, and expand services. Officially, this is policy confidence. Subtextually, it signals that Beijing knows its growth model must rebalance—and that export markets still matter while that transition plays out.

Investor Takeaway

China’s message to Europe is transactional, not conciliatory—rare earth export flexibility is being used to preserve demand and delay bloc hardening, signaling that downstream market access is now as strategically important to Beijing as upstream control.

Disclaimer: This news item is derived from China Daily, a Chinese state-affiliated media outlet. Statements and claims should be independently verified.

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