Beijing’s Policy Shift Prompts European Calls for Collective Action
European leaders are formulating a coordinated reply after China introduced expanded controls on exports of critical minerals used in advanced manufacturing and clean technologies. The updated regulations—outlined in Announcement No. 61—place new restrictions on several rare-earth elements, including europium, holmium, thulium, erbium, and ytterbium. Following discussions on 14 October 2025, EU Trade Commissioner Maroš Šefčovič said the European Union would cooperate closely with G7 partners to secure industrial supply chains and shield its economy from potential shocks caused by Beijing’s measures.
Heavy Dependence on Chinese Refining Raises Alarm
China processes the vast majority of the world’s rare-earth materials, a dominance that leaves European industries exposed to sudden policy changes. The tightened export regime, expected to come into force on 1 December 2025, could limit access to vital inputs for batteries, renewable energy systems, and defence technologies. Economists and trade analysts warn that this dependency threatens the EU’s green and digital transitions, urging rapid diversification through domestic mining, recycling projects, and partnerships with alternative suppliers in Africa and Scandinavia.
Brussels Pursues Legal and Diplomatic Avenues Before Trade Action
Rather than resorting to swift countermeasures, EU officials are seeking a unified strategy that combines diplomacy and trade law. Consultations are underway with the United States, Japan, and Canada to examine potential joint responses and assess whether China’s decision violates World Trade Organization obligations. Lars Løkke Rasmussen, Denmark’s foreign minister and holder of the EU Council presidency, said the bloc must “demonstrate resilience and solidarity in defending strategic interests.” A formal plan outlining the EU’s next steps is expected by year’s end, focusing on both immediate supply safeguards and long-term independence from Chinese-controlled resources.
