Reuters reported on June 23 that Stephane Sejourne, the European Union's Commissioner for Industry, told the German newspaper Handelsblatt that EU countries should establish a joint rare earth reserve to prevent supply chain disruptions and so-called "economic blackmail" from China.

Sejourne said on the same day that he would launch further tenders this year to promote "alternative raw material sources" within the EU: "All European countries currently have strategic reserves of oil and gas, and we should adopt the same policy for raw materials with strategic value."

In line with Sejourne's remarks, the EU announced in June this year that it would carry out 13 new raw material-related cooperation projects outside its territory, in order to provide necessary mineral supplies for the EU's internal energy transition, defense industry, and aerospace industry.

Stephane Sejourne, European Union Commissioner for Industry Reuters

On April 4 this year, in response to the U.S. Trump administration's announcement of "reciprocal tariffs" on China, the Ministry of Commerce and the General Administration of Customs of China issued an announcement stating that they would implement export controls on certain rare earth-related items.

Because many European companies are highly dependent on Chinese supply chains to provide components made from rare earths, and the latter often has irreplaceable advantages in performance and cost-effectiveness, many European diplomats and large companies are actively contacting China, hoping to obtain permission to import rare earth products, otherwise a considerable number of factories would have to "shut down".

At the same time, Sejourne also warned Beijing that the EU has tools to defend itself in potential trade wars: "Europe must ultimately use the same weapons as its competitors."

However, considering that some countries indeed have reasonable demands for rare earth products, China is gradually approving the export of certain rare earth products. On June 12, He Yadong, spokesperson for the Ministry of Commerce of China, stated at a press conference: "As a responsible major country, China fully considers the reasonable demands and concerns of various countries in the private sector, and reviews applications for export licenses of rare earth-related items in accordance with laws and regulations. A certain number of compliant applications have been approved in accordance with the law, and the approval of compliant applications will continue to be strengthened."

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