Beijing’s Policy Sparks Urgency Among European Leaders
European policymakers are crafting a joint response to China’s newly expanded export restrictions on vital minerals used across the continent’s technology, defence, and renewable energy sectors. The changes, outlined in Beijing’s Announcement No. 61, widen export controls to include rare-earth elements such as holmium, erbium, europium, ytterbium, and thulium. After a ministerial meeting on 14 October 2025, EU Trade Commissioner Maroš Šefčovič said Europe would act together with G7 partners to strengthen supply resilience and prevent China’s decision from undermining key industrial production lines.
Dependence on Chinese Processing Poses Strategic Challenge
China’s dominance in rare-earth refining—accounting for more than 80 percent of global capacity—has left Europe vulnerable to sudden policy shifts from Beijing. The latest restrictions, set to come into force on 1 December 2025, are expected to tighten access to crucial inputs for clean-energy technologies and advanced electronics. Analysts caution that the move could ripple through European manufacturing, increasing costs and slowing progress toward climate targets. The European Central Bank and several research institutes have urged accelerated investment in recycling programs, domestic extraction, and strategic partnerships in regions like Africa and Scandinavia to lessen reliance on Chinese supply chains.
Diplomatic Coordination Favoured Over Immediate Trade Retaliation
Brussels is prioritizing a unified diplomatic and legal response rather than rushing into punitive measures. EU officials are reviewing potential challenges within the World Trade Organization framework while engaging allies in Washington, Tokyo, and Ottawa to build a collective strategy. Lars Løkke Rasmussen, Denmark’s foreign minister and current holder of the EU Council presidency, described the issue as “a defining test of Europe’s capacity to act decisively in defence of its economic autonomy.” The European Commission is expected to unveil a comprehensive policy package by year’s end, combining near-term contingency plans with longer-term initiatives to diversify critical mineral sources.
