China Extends Rare Earth Export Control Pause to EU: POLITICO
China has intensified its control over vital minerals by extending export restrictions on rare earth elements. This move impacts the clean technology and defense sectors significantly. The European Union (EU), which sources nearly 99% of its rare earth supply from China, is now urgently working to diminish its dependence.
EU’s Response to China’s Export Controls
In a press briefing in Rome, EU Trade Chief Maroš Šefčovič highlighted ongoing “high-level official talks on export controls” with Chinese representatives. He aims to speak with his Chinese counterpart shortly to discuss these critical issues.
Collective Purchasing Strategy
Šefčovič proposed a strategy for the EU to jointly purchase critical raw materials. This initiative could enhance bargaining power by representing the largest trading bloc globally. He stated, “We can bid on behalf of the European Union to secure better prices for essential materials.”
Market Repercussions
The recent export controls by Beijing have unsettled markets and complicated supply chains. European industries are experiencing prolonged delays and significant price surges due to raw material shortages.
Diversifying Supply Chains
- The European Commission is actively working to secure alternative supplies of rare earth magnets.
- A plan aims to diversify Europe’s supply chain by the end of this year.
European Commission spokesperson Olof Gill acknowledged China’s recent decision to suspend certain export controls for 12 months, as announced on October 9, 2025. He described this as a responsible move to stabilize global trade flows in a critical sector.
Global Coordination Among Allies
Meanwhile, G7 nations are uniting their efforts to tackle China’s influence over crucial minerals. During a recent meeting, G7 ministers finalized numerous agreements concerning critical minerals as part of a new supply chain initiative. This agreement aims to lessen China’s dominance in rare earth production.
