EU Officials Warn of Strategic Risks as Beijing Tightens Trade Rules
The European Union is mobilizing a coordinated response after China expanded export restrictions on minerals essential for electric vehicles, wind turbines, and advanced electronics. The new rules, set out in Beijing’s Announcement No. 61, extend export licensing to additional rare-earth elements such as erbium, holmium, thulium, europium, and ytterbium. Following a meeting of ministers on 14 October 2025, EU Trade Commissioner Maroš Šefčovič confirmed that Europe would work closely with its G7 partners to safeguard supply stability and reduce exposure to Beijing’s trade leverage.
China’s Dominance Leaves Europe Exposed to Supply Disruptions
With more than four-fifths of global rare-earth processing concentrated in China, European manufacturers face increasing uncertainty over access to critical materials. The updated export rules, expected to take effect on 1 December 2025, could further strain supplies for renewable energy technologies and defence equipment. Economists and policy experts say the restrictions highlight Europe’s dependency on Chinese refining capacity and reinforce the need for investment in domestic production, recycling facilities, and diversified sourcing from regions such as Africa and Northern Europe.
Brussels Eyes Coordinated Diplomacy Before Escalating Trade Measures
Rather than launching immediate countermeasures, EU leaders are pursuing a unified diplomatic strategy and assessing legal options under World Trade Organization frameworks. Discussions are ongoing with allies including the United States, Japan, and Canada to explore collective action and prevent further disruption to global markets. Danish foreign minister Lars Løkke Rasmussen, who currently heads the EU Council presidency, described the challenge as “a defining test of Europe’s ability to act together in defence of its economic security.” The European Commission is expected to unveil a comprehensive response plan before the end of the year, combining short-term mitigation efforts with long-term strategies for reducing reliance on Chinese raw materials.
