European Commission President Ursula von der Leyen said Brussels is examining all options to respond to China’s threat regarding rare earth materials. Speaking at the Berlin Global Dialogue on Saturday, she noted that China has dramatically increased export controls on rare earths and battery materials in recent weeks and months, calling it a “significant risk.” In her clearest remarks since China announced plans earlier this month to restrict rare earth exports, von der Leyen stated that the EU is focused on finding solutions with Chinese counterparts, but stands ready to use all available tools if necessary, including coordination with G-7 partners for a unified response. Her comments follow French President Emmanuel Macron’s call for EU leaders to consider using the so-called Anti-Coercion Instrument (ACI)—the bloc’s strongest trade tool—against Beijing if no resolution is reached over planned export restrictions on critical raw materials. The ACI has never been used and was designed primarily as a deterrent against third countries using trade measures to pressure EU policy decisions. Von der Leyen warned that while China’s move fits into broader U.S.-China economic tensions, it has a “major impact” on Europe, where 90% of rare earth magnet consumption relies on imports from China. The EU is increasingly concerned about China’s restrictive trade practices and is striving to protect its industries from unfair competition posed by heavily subsidized Chinese goods. Recently, Beijing also announced strict new export controls on rare earth minerals, potentially endangering European industry and intensifying restrictions on foreign firms.
EU Weighs All Options Against China’s Rare Earth Threat
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