UPDATE 1-French aerospace groups fret over 'weaponisation' of global supply chains

France's aerospace industry on Thursday expressed concern over the "weaponisation" of global supply chains as major powers pursue ‌their geopolitical agendas, and warned that rare earths remained a potential pressure point despite a U.S.-China trade truce. Olivier Andries, president of France's ⁠GIFAS aerospace association and CEO of engine maker Safran, said 90% of the industry's needs for the rare elements were supplied by China, which is at odds with Washington over trade.

France's aerospace industry on Thursday expressed concern over the "weaponisation" of global supply chains as major powers pursue ‌their geopolitical agendas, and warned that rare earths remained a potential pressure point despite a U.S.-China trade truce.

Olivier Andries, president of France's ⁠GIFAS aerospace association and CEO of engine maker Safran, said 90% of the industry's needs for the rare elements were supplied by China, which is at odds with Washington over trade. "There is ​a trend towards the weaponisation of the supply chain, towards using the dependency on critical ‍supplies to create a geopolitical advantage. That is particularly the case for rare earths which is a very sensitive topic," he said.

Rare earths or the magnets which they are sometimes made into can be found in ⁠small ‌but significant quantities in ⁠many modern products, including jet engines. Andries, speaking at a GIFAS briefing on a day when France's deeply divided parliament ‍was returning from its end-year break, said he was also concerned over the continued lack of ​a domestic budget for 2026, adding parliamentarians had "lost direction".

French Prime Minister Sebastien Lecornu is ⁠making a fresh attempt to pass the budget after lawmakers passed emergency legislation. So far, France's defence plans are on track, ⁠Andries said, as Europe boosts spending in the face of U.S. political pressure and the ongoing conflict in Ukraine.

Asked about the future of a Franco-German-Spanish fighter project, which is ⁠engulfed in disputes between Airbus and Dassault Aviation, Andries said: "There is a very strong political will at ⁠the highest level ‌in France and Germany to go ahead. But for things to advance, you also need to have agreements and the manufacturers accepting to ⁠work together".

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