EU readies options to counter China’s rare earth curbs

The European Union (EU) is working on trade options to counter China’s planned export controls on critical raw materials should the bloc fail to reach a diplomatic solution with Beijing.

- Bloomberg

The European Commission is preparing a list of trade measures by the end of the month that can later be deployed against China to boost its negotiating leverage, according to people familiar with the matter. The commission is also developing a plan to protect critical supplies in the short-term and secure other sources.

China’s export restrictions would pose a massive threat to Europe’s industry and security, as the inputs are critical across sectors and used in everything from electric vehicle batteries to defence manufacturing. The EU's trade chief Maros Sefcovic held talks with his Chinese counterpart, Wang Wentao, without reaching an agreement that addressed the bloc’s concerns.