Brussels (Brussels Morning Newspaper) – China’s recent export controls on rare-earth materials are a significant concern for the European Union, EU trade chief Maros Sefcovic stated, as tensions continue to escalate between Brussels and Beijing.
China revealed on Thursday that it is tightening restrictions on rare earth exports, stating that the technology used for mining, processing, or manufacturing magnets from these materials can only be exported with government approval.
How is the EU planning to respond to China’s move?
Maros Sefcovic emphasised the issue before an EU trade ministers’ meeting in Denmark, describing China’s actions as a “dramatic” widening of raw materials under restrictions, which is worsening an already severe situation. ‘
The EU trade chief stated on Tuesday that the European Union will respond firmly to China’s recent export restrictions on rare earths, working in coordination with its G7 partners.
He also mentioned that he talked with U.S. Commerce Secretary Howard Lutnick about the situation, and they agreed that it would be wise to hold a G7 video call soon after this initial discussion. The G7 includes the United States, Canada, Germany, France, Italy, the United Kingdom, and Japan.
Why did China tighten controls, citing national security reasons?
Last week, Beijing announced comprehensive new export restrictions on rare-earth magnets and their raw materials due to national security concerns. The regulation mandates that magnet producers must obtain approval from China if they utilise even minimal amounts of Chinese rare earth elements. Beijing accounts for 90% of the world’s rare-earth magnets, which are essential in electromotors, wind turbine generators, and defence technologies.
China’s commerce ministry stated that applications for products with military purposes would seldom receive approval, while requests for semiconductors or artificial intelligence systems would be considered individually.
According to China’s Ministry of Commerce, these measures will also cover technology used in assembly, adjustment, maintenance, repair, and upgrading of production equipment. Chinese companies must obtain government approval before collaborating with foreign firms on rare earths.
Moreover, in 2024, China instituted significant new limitations on rare earth minerals exports as it tightened its control over an essential resource. Export controls were expanded to cover 12 of the 17 rare earth elements, including previously restricted samarium, gadolinium, terbium, dysprosium, lutetium, and scandium, along with newly restricted holmium, erbium, thulium, europium, and ytterbium.
