Renew Europe: China squeezing Europe’s rare earths

2 December 2025 by
ALDE Party, ALDE Party Communications

Renew Europe is calling for decisive action against China's weaponisation of trade through export controls on critical raw materials, rare earths and magnets. These minerals are vital to strategic industries including aerospace and defence, making them central to Europe's energy sovereignty and resilience. 

The consequences are severe. When a Dutch company trades with a German company on a product containing just 1% rare earth materials, China must approve the transaction. This is unacceptable. Europe cannot remain passive in the face of Chinese coercion targeting EU businesses. 

China is tightening its hold on global supply chains, using pressure to extend its influence well beyond its borders. Although new export controls are on hold, earlier restrictions still stand. The EU cannot let its guard down. 

Karin Karlsbro MEP (Liberalerna, SE), acting Renew Europe coordinator for the European Parliament Committee on International Trade, stated: 

"In a time of coercion and blackmail in international trade, the European Union must diversify and deepen partnerships around the world to reduce harmful dependencies. A strong economic security strategy depends on open markets, fair competition, and rules-based trade." 

Bart Groothuis MEP (VVD, NL) emphasised:  

"If we don’t act, Europe is deindustrialising faster than we are derisking. China is imposing intentional and brutal restrictions on rare earths minerals. While Japan and the US responded to similar restrictions with speed and ruthlessness, the EU still has no tangible results after three years. So act! Europe must build a new trade and industrial framework to secure access to critical materials. But without trade protection, Resource EU investments will leak away. Let’s build a new business case, as Japan and the US have demonstrated. Mine, refine, and define our own future.”  

Europe must push back against Chinese coercion by updating its economic security strategy to strengthen leverage with like-minded partners and uphold a rules-based trade order. The EU needs to diversify its global suppliers and end its reliance on China and reduce vulnerability. This requires investing in Europe’s own capacity for extraction and processing of critical materials, ensuring its industry is more secure. 

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