BRUSSELS (AP) — The European Union has agreed with China on stabilizing the flow of rare earth materials and products from China that are critical elements for many high-tech and military products, an official said Tuesday. EU trade commissioner Maroš Šefčovič met with Chinese Commerce Minister Wang Wentao in Brussels on Friday to discuss Beijing's export controls on rare earths issued in April and October, and European regulations on semiconductor sales, said Olof Gill, a spokesperson for the European Commission, the 27-nation bloc's executive arm. Like the U.S., Europe runs a huge trade deficit with China — around 300 billion euros ($345 billion) last year. It relies heavily on China for rare earth material and products, which are also used to make magnets used in cars and appliances.

Gill said that the EU welcomed China’s recent 12-month suspension of rare earths export controls, and called for a new and stable system of trade in the critical materials. The EU is working with China on an export licensing system to ensure a more stable flow of rare earth minerals to the bloc, he said.

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

Šefčovič said that that Brussels and Beijing were continuing to speak about further trade measures.

“Both sides reaffirmed commitment to continue engagement on improving the implementation of export control policies,” he said in an X post.

China is the EU’s second-largest trading partner in goods, after the United States. Bilateral trade is estimated at 2.3 billion euros ($2.7 billion) per day.

Both China and the EU believe it's in their interest to keep their trade ties stable for the sake of the global economy, and they share certain climate goals.