European Commission President Ursula von der Leyen stated that the EU is considering all options to respond to the threat from China regarding rare earth elements. Von der Leyen made this statement at the Berlin Global Dialogue, as reported by UNN.
Details
"Speaking of independence. There are many areas I could consider. But today I want to focus on one extremely sensitive example that is happening right now. In recent weeks and months, China has sharply tightened export controls on rare earth elements and battery materials. At least to some extent, this is part of broader economic friction between China and the US. But it has a big impact on us here in Europe. We all know how important rare earth elements are for our industry – whether for cars, semiconductors, or military equipment," said von der Leyen.
According to her, the decisions announced by the Chinese government on October 9 pose a significant risk.
"Essentially, these actions will severely hinder other countries from developing a rare earth industry. This threatens the stability of global supply chains and will have a direct impact on European companies. If you consider that over 90% of our consumption of rare earth magnets is imported from China, then you see the risks for Europe and its most strategic industrial sectors. From automotive to industrial engines, from defense to aerospace, from AI chips to data centers. In the short term, we are focused on finding solutions with our Chinese counterparts. But we are prepared to use all tools in our arsenal to respond if necessary. And we will work with our G7 partners on a coordinated response," added von der Leyen.
Recall
China announced tighter export controls on rare earth technologies, thereby expanding restrictions that have been a source of tension between Beijing and Washington.