China Imposes New Export Controls on Rare-Earth Materials
Beijing has enacted sweeping export controls on rare-earth magnets and their raw materials, citing national security concerns. This new regulation mandates that manufacturers seeking to utilize even minimal amounts of Chinese rare-earth elements must first secure government approval. With China producing approximately 90 percent of the world’s rare-earth magnets, which are crucial for electromotors, wind turbine generators, and defense systems, the implications of these controls are significant, reports 24brussels.
The announcement has sparked backlash from U.S. President Donald Trump, who is considering imposing new tariffs in retaliation. Furthermore, he has indicated that he may reconsider a planned meeting with Chinese President Xi Jinping at the end of October.
In response to the heightened tensions, the European Union’s trade chief, Maroš Šefčovič, has acknowledged the situation’s potential impact on Europe. Although Washington is making efforts to ease the confrontation, Šefčovič has not dismissed the idea of a reciprocal action from the EU, emphasizing the need for an assessment from member states.
“For us, what is important is to protect the European general interest and to find a solution which would not be harmful to the European industry. So first we consult and assess the situation,” he stated.
Šefčovič also mentioned plans to set up a videoconference with his Chinese counterpart, likely within the next week, to discuss these developments further. This move underscores the EU’s commitment to maintaining open lines of communication while addressing the concerns arising from China’s new trade regulations.
