Brussels Warns of “Unified and Tough” Action After Beijing Tightens Controls
The European Union signalled on 14 October 2025 that it will pursue a firm, coordinated response to China’s decision to expand export restrictions on critical minerals used in semiconductors, electric vehicles, and defence technologies. The move follows Beijing’s new regulations, known as Announcement No. 61, which broaden export licensing requirements to include additional rare-earth elements such as holmium, erbium, thulium, europium, and ytterbium. EU Trade Commissioner Maroš Šefčovič said member states would work with G7 partners to “defend Europe’s strategic autonomy” and ensure that China’s measures “do not disrupt global supply chains.”
Rare-Earth Dependence Exposes Europe’s Supply Weakness
China dominates more than 80 percent of global rare-earth processing capacity, leaving European industries heavily reliant on Chinese exports for magnets, batteries, and high-performance alloys. Analysts warn that the new export regime, which takes effect on 1 December 2025, could deepen market volatility and increase production costs across Europe’s clean-energy and high-tech sectors. The European Central Bank and other institutions have previously identified rare-earths as among the EU’s highest supply-risk categories, underscoring the urgency of diversifying sources through recycling, stockpiling, and new mining ventures in Africa and the Nordic region.
EU Seeks G7 Coordination, Avoids Immediate Retaliation
Rather than imposing swift tariffs or sanctions, Brussels is seeking a concerted diplomatic and legal response. Officials said they are reviewing potential WTO avenues and consulting with Washington, Tokyo, and Ottawa to align strategy. The Danish foreign minister, Lars Løkke Rasmussen, whose country currently chairs the EU Council presidency, described the restrictions as “a test of Europe’s economic resilience and strategic unity.” EU ministers are expected to present a coordinated action plan by year’s end, combining trade defence tools with longer-term efforts to reduce dependence on Chinese critical materials.
