China dominates the global industry for extracting and refining the strategic minerals, giving it vital leverage in a renewed trade war this year with Washington.

Since April, Beijing has required licenses for certain exports, sending ripple effects across worldwide manufacturing sectors.

Following a tense summit in July hosted by Beijing, European Union chief Ursula von der Leyen said that leaders had agreed to an improved mechanism for Chinese exports of rare earth minerals to the bloc.

But in its annual position paper released Wednesday, the European Union Chamber of Commerce in China said that “many companies—particularly small and medium-sized enterprises (SMEs)—are still experiencing significant supply chain disruptions”.

“No long-term, sustainable solution has been put forward,” it said, adding that the Chamber is in “regular contact” with Chinese authorities on the matter.

“We have a number of members who are right now suffering significant losses because of these bottlenecks,” Chamber president Jens Eskelund told journalists.

“We have raised with our members more than 140 applications and it’s a fraction of these so far that have been resolved,” he said.

“So this has not gone away.”

In its latest publication, the lobby representing over 1,600 member companies put forward 1,141 recommendations to Chinese policymakers, aimed at smoothing over various obstacles faced by European firms in the country.

Chief among those hurdles this year, Eskelund said, is a wavering Chinese economy that has struggled to mount a robust rebound since the end of the COVID-19 pandemic.

Sluggish consumption, a manufacturing glut and prolonged woes in the country’s vast property sector are among the main challenges now vexing Beijing policymakers and businesses.

In a sign of entrenched woes facing the world’s second-largest economy, data released this week showed factory output and consumption rising in August at their weakest pace in around a year.

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

“The big enemy here—that’s the state of the domestic economy and supply-demand balance,” he said.

“I think we see completely eye-to-eye with the vast majority of Chinese companies.”

On a state visit that mixed royal pageantry with tough political talks on Ukraine and migration, Macron said Europe must strengthen its economy and defenses and reduce its dependence “on both the U.S. and China.”

Macron’s three-day trip, at the invitation of King Charles III, is the first state visit to the U.K. by a European Union head of state since Brexit, and a symbol of the U.K. government’s desire to reset relations with the bloc after Britain acrimoniously left the EU in 2020.

Macron addressed members of both houses of Britain’s Parliament packed into the building’s ornate Royal Gallery. He said the two countries represent “a world order based on law, justice and respect for territorial integrity, an order that is today being attacked on a daily basis.”

“The United Kingdom and France must once again show the world that our alliance can make all the difference,” Macron said, adding that “we will save Europe by our example and our solidarity.”

He said that even though Britain has left the EU, “the United Kingdom cannot stay on the sidelines. Because defense and security, competitiveness, democracy — the very core of our identity — are connected across Europe as a continent.”

Pomp and politics

The French president and his wife, Brigitte Macron, were treated to the full force of British ceremonial charm, a far cry from the chilly relations of 2022, when then-Foreign Secretary Liz Truss said that the “jury is out” on whether Macron was a friend or a foe.

The Macrons were greeted at London’s RAF Northolt air base by Prince William and his wife Catherine — wearing a dress by French design house Christian Dior — before being met by King Charles and Queen Camilla in Windsor, west of London. They were driven to the almost 1,000-year-old royal residence of Windsor Castle in horse-drawn carriages, through streets bedecked in Union Jacks and French tricolor flags.

The king and queen hosted a banquet for the Macrons at Windsor Castle on Tuesday evening, with 160 guests including politicians, diplomats and celebrities such as Mick Jagger and Elton John. They were served summer vegetables, chicken with asparagus and iced blackcurrant parfait, along with Champagne and a gin-infused cocktail called L’entente, after the “entente cordiale” struck between Britain and France in 1904.

As monarch, Charles is expected to be above politics, but he spoke about the support Britain and France give Ukraine “in defense of our shared values,” noted the challenge of “irregular migration across the English Channel” and said the two countries face “complex threats, emanating from multiple directions.

“As friends and as allies, we face them together,” Charles said.

New tactics to stop boats

Politics will take center stage on Wednesday, when Macron sits down for talks with U.K. Prime Minister Keir Starmer on migration, defense and investment — including a 12.5% stake by French energy firm EDF in a new nuclear power plant planned for eastern England.

Macron also came bearing a tantalizing cultural gift: an agreement to send the Bayeux Tapestry to Britain for the first time in more than 900 years. The 70-meter (230-foot) tapestry showing the Norman conquest of England in 1066 will go on display at the British Museum from September 2026 to July 2027.

At talks Wednesday and a U.K.-France summit on Thursday, Macron and Starmer will discuss ways to stop migrants from crossing the English Channel in small boats and try to advance plans for a post-ceasefire security force for Ukraine, despite apparent U.S. indifference to the idea and Russia’s refusal to halt the onslaught on its neighbor.

Britain receives fewer asylum-seekers than Mediterranean European countries, but thousands of migrants each year use northern France as a launching point to reach the U.K., either by stowing away in trucks or — after a clampdown on that route — in small boats across one of the world’s busiest shipping lanes.

The U.K. has struck a series of deals with France over the years to increase patrols of beaches and share intelligence in an attempt to disrupt the smuggling gangs.

It has all had only a limited impact. About 37,000 people were detected crossing the English Channel in small boats in 2024, and more than 20,000 people made the crossing in the first six months of 2025, up by about 50% from the same period last year. Dozens of people have died trying to cross.

British officials have been pushing for French police to intervene more forcefully to stop the boats, and welcomed the sight of officers slashing rubber dinghies with knives in recent days.

France is also considering a U.K. proposal for a “one-in, one-out” deal that would see France take back some migrants who reached Britain, in return for the U.K. accepting some of those in France.

Macron said the leaders would try “to fix today what is a burden for our two countries.”

“France and the U.K. have a shared responsibility to address irregular migration with humanity, solidarity and fairness,” he said.

Keeping Ukraine in focus

Starmer and Macron have worked closely together to rally support for Ukraine, though they have taken contrasting approaches to U.S. President Donald Trump, with Macron more willing to challenge the American president than the emollient Starmer.

Britain and France have led efforts to form an international peacekeeping force for Ukraine to reinforce a future ceasefire with European troops and equipment and U.S. security guarantees.

Trump has shown little enthusiasm for the idea, however, and a ceasefire remains elusive. British officials say the “coalition of the willing” idea is alive and well, with Macron and Starmer due to join an international videoconference on Thursday to discuss planning for the force.

Macron said the coalition was a sign that “Europeans will never abandon Ukraine – never.”