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Beijing has agreed to fast-track approvals for rare earth export licences for some European companies after China’s strict controls on shipments of the critical minerals rocked global supply chains.

European officials and industry groups have complained that a new licence system for rare earths and related magnets, introduced in the wake of Donald Trump’s “liberation day” tariffs in April, risked causing widespread factory stoppages.

However, according to a statement published by China’s commerce ministry on Saturday, Beijing is now “willing to establish a green channel for qualified applications to speed up approval”.

No details were given as to how fast the process would be, or which European companies would be included. One European executive in Beijing, who asked not to be named, warned that manufacturers might still face delays in receiving their rare earth and magnet shipments in the short to medium-term given the “huge backlog” of licence applications.

The announcement followed a meeting between Chinese commerce minister Wang Wentao and Maroš Šefčovič, EU commissioner for trade and economic security, in Paris last week.

Wang urged the EU to “take effective measures to facilitate, safeguard and promote compliant trade of high-tech products to China”.

Beijing has become increasingly concerned that Europe has followed US-led restrictions on sales of semiconductors and chipmaking equipment to China.

On Friday Trump said a new high-level round of trade talks between the US and China would take place on Monday in London, paving the way for further de-escalation in the trade war between the world’s two biggest economies.

Rare earths are just one of many disputes between Brussels in Beijing. The sides have also been in talks over China’s opposition to the bloc’s tariffs on Chinese electric vehicles, as well as Beijing’s tariffs on French cognac.

According to the commerce ministry, discussions on prices of Chinese electric vehicles sold in the bloc have entered “the final stage” but further efforts “from both sides were needed”. China plans to announce the result of its investigation into European brandy imports on July 5.

Beijing has sought to improve ties with Brussels since Trump returned to office but EU officials said that, despite warm words, there had been little compromise on issues of concern until now.

Šefčovič on Wednesday said he had pressed his Chinese counterpart over the rare earth delays, which were slowing deliveries for manufacturers of a wide range of items from cars to washing machines.

The Financial Times reported on Thursday that European businesses had lobbied officials in Beijing to set up a special channel to fast-track export licences for “reliable” companies.

On Friday the European Chamber, a Beijing lobby group, warned that despite Beijing approving urgently needed shipments, progress had “not been sufficient” to prevent severe supply chain disruptions for many companies.

Jens Eskelund, the chamber president, said member companies were “still struggling” with both the delays and the lack of transparency.

Additional reporting by Cheng Leng in Hong Kong

David Huerta, president of the Service Employees International Union (SEIU) California and SEIU-United Service Workers West’s president, was injured and detained by federal agents during a series of U.S. Immigration and Customs Enforcement (ICE) raids in downtown Los Angeles on Friday.

Newsweek reached out to SEIU via its online form on Saturday for comment.

The Context

As reported by Newsweek, hundreds of people flooded the streets of downtown Los Angeles on Friday following a series of reported raids carried out by ICE earlier that day.

The raids resulted in the detention of at least 44 individuals and sparked protests, with demonstrators clashing with law enforcement. ICE agents used pepper spray and smoke grenades to disperse the protesters.

What To Know

Reports say Huerta was observing and documenting ICE operations when he was allegedly pushed to the ground by federal agents, resulting in a head injury.

ABC News said, at one point, a scuffle broke out involving federal agents, during which Huerta appeared to be pushed and struck his head. In one video, a federal agent is seen pushing him while his hands are at his hips, causing him to fall to the ground.

Huerta was hospitalized for treatment and later transferred to the Metropolitan Detention Center, where he remained in custody, the Los Angeles Times said.

What People Are Saying

SEIU stated on its X, formerly Twitter, page: “Let’s be clear: ICE injured and detained the president of SEIU California for peacefully observing.

“ICE picked the wrong side. The wrong state. The wrong person. and the wrong union. David Huerta stood up. And 750,000 SEIU workers are standing with him.”

The post has since had over 949,000 views.

A SEIU press release updated Friday, stated: “David Huerta, President of SEIU California and SEIU- United Service Workers West, has been released from the hospital where he was treated for injuries sustained during his arrest and at this time remains in custody.”

Huerta made the following statement: “What happened to me is not about me; This is about something much bigger. This is about how we as a community stand together and resist the injustice that’s happening. Hardworking people, and members of our family and our community, are being treated like criminals. We all collectively have to object to this madness because this is not justice. This is injustice. And we all have to stand on the right side of justice.”

Tia Orr, executive director of SEIU California, said in a statement: “SEIU California members call for the immediate release of our President, David Huerta, who was injured and detained at the site of one of today’s ICE raids in Los Angeles. He is now receiving medical attention while in custody.

“We are proud of President Huerta’s righteous participation as a community observer, in keeping with his long history of advocating for immigrant workers and with the highest values of our movement: standing up to injustice, regardless of personal risk or the power of those perpetrating it.

“We call for an end to the cruel, destructive, and indiscriminate ICE raids that are tearing apart our communities, disrupting our economy, and hurting all working people. Immigrant workers are essential to our society: feeding our nation, caring for our elders, cleaning our workplaces, and building our homes.”

Elected officials have denounced both the raids and Huerta’s detention.

California Governor Gavin Newsom posted on X: “David Huerta is a respected leader, a patriot, and an advocate for working people. No one should ever be harmed for witnessing government action.”

Senator Sasha Renée Pérez (D-Pasadena) issued a statement saying: “I call for the immediate release from custody of SEIU President David Huerta who was harmed and arrested while protesting one of several immigration raids taking place today in Los Angeles County. David is a respected leader in California’s powerful and united labor movement.

“The reign of terror and merciless attacks on our immigrant communities by the Trump Administration must stop.”

Congresswoman Linda Sánchez posted on X: “ICE violently detaining and injuring labor leader David Huerta for exercising his constitutional rights is an attack not just on him, but on every worker and immigrant.”

However, not everyone was in agreement.

Bill Essayli, U.S. attorney for the Central District of California, posted on X: “Federal agents were executing a lawful judicial warrant at a LA work site this morning when David Huerta deliberately obstructed their access by blocking their vehicle. He was arrested for interfering with federal officers and will face arraignment in federal court on Monday. Let me be clear: I don’t care who you are—if you impede federal agents, you will be arrested and prosecuted. No one has the right to assault, obstruct, or interfere with federal authorities carrying out their duties.”

What Happens Next

Since his inauguration on January 20, President Donald Trump has introduced widespread changes, primarily through executive orders, with immigration control emerging as a central focus of his administration.

The latest incident has intensified scrutiny of ICE’s enforcement tactics and raised concerns about the treatment of community observers and labor leaders during such operations.

As Donald Trump and Elon Musk’s “bromance” broke apart on Thursday, tech industry figures who had backed both men raced to contain the fallout.

“Elon isn’t taking calls from anyone,” complained one Silicon Valley financier and major donor to Republican candidates. “Not from people who have billions invested in his companies . . . The Valley is losing their shit.”

At stake was an alliance between the tech world and the populist right that not only helped return Trump to office but also one that founders and investors had hoped would herald an era of tax cuts and deregulation, as well as an open door to crypto and artificial intelligence.

Musk’s role in the Trump administration had also paved the way for several Silicon Valley figures to take prominent positions in government — roles that could now be in peril. 

The sudden deselection of Jared Isaacman, a Musk ally and tech founder who had been nominated to lead Nasa, was just the start of an expected “purge”, one person close to the administration said, threatening tech’s hard-won influence in Washington.

Some of those considered to be at risk were crypto and AI tsar David Sacks, policy adviser Sriram Krishnan, and Michael Grimes, Musk’s former banker at Morgan Stanley, now an official at the Department of Commerce.

As Musk’s relationship with the White House worsened, key figures on the tech right tried to play down the permanence of the rift. 

“USA is VERY lucky to have both E and Pres Trump,” Joe Lonsdale, a co-founder of Palantir and investor in Musk’s companies wrote on X. 

Hedge fund manager Bill Ackman urged the duo to “make peace for the benefit of our great country”, pleading: “We are much stronger together than apart.”

David Friedberg, a co-host of the All-In podcast that often features Musk and that has become a sounding board for the Trump-aligned tech world, suggested there was a broader cost to America from the spat between the US president and the Tesla boss. “China just won,” he posted.

Behind the scenes, prominent Silicon Valley figures were desperately trying to prevent Musk from appearing on an emergency episode of the podcast, according to two people familiar with the matter, out of concern that the billionaire would make the dispute even worse and poison the relationship with tech’s most powerful ally in Washington, vice-president JD Vance.

“It’s going to be a disaster with Musk in this frame of mind,” one of the people warned. 

One of the podcast co-hosts, David Sacks, was “shell-shocked”, the second person added, and needed to be protected from public scrutiny until things calmed down. Sacks, usually a frequent poster on social media, has remained silent since the Musk-Trump relationship imploded. He did not immediately respond to a request for comment.

Elsewhere, other prominent tech figures debated whether reconciliation was possible and, if not, what life beyond the break-up would look like.   

Ryan Selkis, founder of a crypto platform who became a prominent Trump backer, told the Financial Times: “Elon will be back in the fold in a matter of weeks, but it will be a chastened Elon.”

Delian Asparouhov, a space tech founder who co-runs the Hill & Valley Forum, which links Silicon Valley and Washington, said: “I don’t think there is going to be a de-escalation here.” He expressed concern to tech news site TBPN that smaller space companies that work with Musk’s SpaceX could encounter “more resistance” from the White House.

Others bemoaned the souring of the tech community’s Trump bet. “Maybe Silicon Valley got played by Trump. He got what he wanted,” said one West Coast venture capital founder, citing Musk’s $250mn donation to Trump’s campaign. 

The person lamented the ongoing economic volatility — caused by tariffs and Trump’s unpredictability — during a presidency that they had been promised would be a boon to business. “We’re all experiencing a liquidity crunch,” they said. “We need public markets to open.” 

Cracks in Silicon Valley and Washington’s marriage of convenience had been appearing for weeks, particularly over the Trump tax bill that so irked Musk. Deficit hawks balked at the legislation adding trillions to the US debt pile, while more socially progressive tech figures bridled at proposed cuts to entitlement programmes like Medicaid.

“I am fully for pursuing the elimination of waste and fraud,” said Jon McNeill, a former Tesla president who worked alongside Musk and now runs start-up incubator DVx Ventures. “But at the same time, I don’t want a tax break so badly as to make the most vulnerable suffer. And from what I’m hearing, a lot of my peers feel the same way.”

The public bust-up could now open the door for others in Silicon Valley to replace Musk as tech’s de facto ambassadors in Washington, especially his arch-rival, OpenAI’s Sam Altman. 

“Tech is not represented by one person,” an investor in Musk’s companies said. “Engagement between tech and government is not because JD is a tech guy or because Trump is, it’s because tech is so important,” they added. “This doesn’t end because of one person, even if he’s the most prominent person in the world.”

Additional reporting by Alex Rogers in Washington