EU Strategizes Unified Response to China's Rare Earth Export Controls

The European Union is coordinating with the U.S. and other G7 nations to address China's stringent controls on rare earth exports. These measures have caused global supply concerns. EU officials emphasize the need for a unified approach and are considering diversification of supply as a long-term solution.

The European Union is spearheading efforts alongside the United States and G7 partners to formulate a response against China's enhanced export controls on rare earth minerals. EU ministers, meeting in Denmark, labeled these restrictions as a critical concern in international trade.

China, the globe's leading producer of rare earths, recently intensified its control by adding new elements and refining technologies, escalating scrutiny on semiconductor users. European Trade Commissioner Maros Sefcovic criticized these measures as unjustified, underlining how past restrictions sparked global shortages until alleviating agreements were reached.

As G7 finance ministers prepare to explore response options, EU officials stress the importance of cooperation with the United States to apply collective pressure on China. Danish Foreign Minister Lars Rasmussen advocates for a firm yet realistic united stance, while Commerce Secretary Howard Lutnick suggests supply diversification through joint projects.

(With inputs from agencies.)