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Brussels Considers Trade Response to China’s Rare Earth Restrictions

By  |  October 26, 2025

European Commission President Ursula von der Leyen said the European Union is weighing all possible measures in response to China’s tightening export controls on rare earth elements, according to a Bloomberg report. Speaking at the Berlin Global Dialogue conference on Saturday, von der Leyen warned that Beijing’s restrictions pose a “significant risk” to Europe’s economic and industrial stability.

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    “In recent weeks and months China has dramatically tightened export controls over rare earths and battery materials,” she said, noting that Brussels is working with its Chinese counterparts to find short-term solutions. However, von der Leyen emphasized that the bloc “is ready to use all of the instruments in our toolbox to respond if needed,” and plans to coordinate with G-7 partners to develop a united approach, per a Bloomberg account of her remarks.

    Her comments come amid growing unease within the European Union over China’s use of trade measures as leverage in geopolitical disputes. According to Bloomberg, French President Emmanuel Macron recently urged EU leaders to consider invoking the anti-coercion instrument — the bloc’s most potent trade defense mechanism — if negotiations with Beijing fail. The instrument, known as the ACI, has yet to be deployed but was designed to counter economic coercion from third countries attempting to influence EU policy.

    Von der Leyen also noted that while China’s latest export restrictions stem from “wider economic friction” between Beijing and Washington, the fallout for Europe could be severe. The region currently depends on China for about 90% of its rare earth magnet imports, she said, underscoring the EU’s vulnerability to supply disruptions.

    According to Bloomberg, European officials are increasingly alarmed by Beijing’s tightening grip on key materials vital to clean energy and advanced manufacturing.

    Source: Bloomberg