EU Response to Chinese Restrictions on Rare Earth Exports

The European Parliament has adopted a position on China's restrictions on rare earth exports that are crucial for European industry. This text comes ahead of the EU-China summit in July 2025 and amid growing Union dependence on critical raw material supplies. The measures directly affect key sectors like green technologies, automotive industry, and defense.

Context and objectives

The document builds on the Critical Raw Materials Regulation from April 2024 and the EU Economic Security Strategy. Objectives include reducing dependence on China, securing supply for green and digital transitions, and protecting strategic supply chains. The text references WTO decisions on previous Chinese restrictions on rare earth exports.

Key measures

• Strong condemnation of Chinese export restrictions implemented in April 2025
• Call to diversify supply sources and develop domestic capacities
• Promotion of circular economy and recycling targets for strategic raw materials
• Utilization of WTO framework to challenge restrictive measures
• Intensification of international partnerships for critical raw materials
• Implementation of Net-Zero Industry Regulation

Timeline and implementation

The Parliament's position will be presented at the EU-China summit on 24-25 July 2025. Implementation will occur through coordination with the European Commission and member states within EU industrial policy. Monitoring of impact on supply chains will be continuous with regular reports to Parliament.

Impact for citizens and stakeholders

Restrictions affect automotive manufacturers, green technology industry and defense sector. Citizens may experience price increases for electronics and electric vehicles. SMEs in the supply chain are particularly vulnerable. EU measures aim to protect jobs and industrial competitiveness by securing supply of essential raw materials.