The EU is aiming to coordinate with the US and other G7 partners in response to China’s increased restrictions on rare earth mineral exports.
This move comes as China last week broadened its export restrictions on rare earth elements (REEs) by including five additional elements under new regulations.
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It also implemented more stringent rules that specifically target users in the semiconductor industry.
China produces more than 90% of the world’s processed rare earths, which are essential in products such as electric vehicles and military radars.
These measures were introduced ahead of the upcoming meeting between Presidents Donald Trump and Xi Jinping.
Maros Sefcovic, the European Trade Commissioner, described these measures as unjustified.
EU trade ministers, while meeting in Denmark, expressed “critical concern” over the issue.
Previous controls by China in April led to global shortages, impacting industries such as car manufacturing, until deals with Europe and the US alleviated the supply crunch.
Danish Foreign Minister Lars Rasmussen emphasised the need for a united and “tough” EU response, highlighting the importance of collaboration with the US.
“But we also need to be realistic. This is actually an area of common interest with our friends in the US. If we stick together we can much better pressure China to act in a fair way,” Rasmussen was quoted by Reuters as saying.
Sefcovic suggested that G7 coordination could involve diversifying supply by advancing joint projects for extracting or processing critical minerals.
He stated: “Of course these projects take time, but with this signal we got from China it is clear we have to focus on accelerating these processes as much as possible.”
It was recently reported by the Financial Times that the Pentagon is aiming to acquire up to $1bn of critical minerals as part of a global spree to build stockpiles and mitigate China’s dominance over these essential metals.
