The European Union urged China to ease stringent export controls on rare earth minerals, critical for industries from electric vehicles to fighter jets, as Beijing’s restrictions threaten to halt production across Europe. EU Trade Commissioner Maros Sefcovic raised the issue as a “priority” during a meeting with Chinese Commerce Minister Wang Wentao in Paris, highlighting the “alarming situation” for European manufacturers, particularly automakers. China, which supplies 90% of global rare earths, imposed controls on seven minerals—dysprosium, gadolinium, lutetium, samarium, scandium, terbium, and yttrium—plus magnets in April 2025, retaliating against U.S. tariffs. These measures require export licenses for each shipment, with only 25% of applications approved, causing a 50% drop in magnet shipments to Germany from March to April.
The restrictions, part of a U.S.-China trade spat, have disrupted European supply chains, with carmakers like Volkswagen warning of looming factory shutdowns. Sefcovic proposed a streamlined annual licensing system to reduce delays, noting discrepancies in license data during talks with Wang. The EU Chamber of Commerce in China reports Beijing is overwhelmed by applications, with some firms facing demands for sensitive intellectual property. Across the Atlantic, the U.S., reliant on China for 70% of its rare earth imports, accuses Beijing of violating a 90-day trade truce, escalating tensions.
The controls threaten not only civilian industries but also defense, as rare earths are vital for F-35 jets and missiles. The EU has launched 13 global projects to diversify supply, including in Malawi and South Africa, but building alternatives will take years. Posts on X reflect industry panic, with European firms urging swift resolution to avoid economic fallout. Without relief, China’s grip on rare earths could deepen global trade frictions and cripple Western manufacturing.
Sources: CNN, South China Morning Post, Reuters, The New York Times, X posts
