European companies are bracing for more production shutdowns and losses as China maintains tight restrictions on rare earth exports, despite a July agreement to accelerate shipments to the bloc, the European Union Chamber of Commerce in China.

“Despite the commitments made at the EU-China summit on July 24, we continue to see significant bottlenecks for our members” Chamber President Jens Eskelund told reporters.

Automakers in Europe and beyond have already faced delays and shutdowns after Beijing imposed export controls on certain rare earths and magnets, following tariffs introduced by US President Donald Trump. Chipmakers have also pressed Chinese authorities for relief.

China dominates the refining and processing of rare earths, which are critical for the automotive, defence and technology sectors. Beijing has defended its export curbs as “non-discrimatory” and not aimed at any specific country.

At the July summit between European Comission President Ursula von der Leyen and Chinese President Xi Jinping, Beijing agreed to fast-track export licences for critical law materials, but rejected EU calls to grant longer approvals or eliminate licences together.

Since then, approvals have slowed. The chamber said it is receiving a growing number of complaints from member firms, with fewer than one quarter of the 140 licence applications it has tracked winning approval.

Some companies are filing applications early to mitigate delays that could lead to steep losses.

“We have members already suffering losses because of these bottlenecks”, Eskelund warned that more shutdowns are about to happen.

Chinese customs data shows rare earth magnet exports, including to Europe surge after agreements with the US and EU in June, but chamber officials said the relief has been short lived.