The European Commission is cautious about China's potential easing of export controls on rare earths and chips, despite the US announcing an agreement. The EU automotive industry faces supply chain shortages due to China's restrictions following the Dutch government's control of chipmaker Nexperia. EU officials are engaging with China to ensure chip supply, while discussions continue on export controls affecting key industries. A diplomatic breakthrough is sought to address these supply chain issues, with warnings of imminent assembly line stoppages in the automotive sector.