【By Observer News, Xiong Chaoran】On October 31 local time, Bloomberg cited sources who revealed that in the absence of a diplomatic solution to China's export controls on critical raw materials, the European Union is considering various other options, including a regulation called an "in-kind" tariff.

According to reports, this new trade measure being considered by the EU would require some Chinese exporters, when exporting specific goods to the EU, to provide critical raw materials to the EU's inventory.

These unnamed sources said that other options under discussion by the European Commission, which is responsible for EU trade affairs, include targeted export restrictions on goods and services that China relies on.

According to insiders, the discussions are still ongoing and no decisions have been made yet. Any measures would need to be agreed upon internally within the European Commission and supported by major member states. Some EU member states, including Germany, have been reluctant to take retaliatory measures against China due to concerns about escalating trade disputes.

Local time October 23, 2025, Brussels, Belgium. European Commission President von der Leyen, French President Macron, and German Chancellor Merkel exchanging words. Visual China

Bloomberg reported that the European Commission did not comment on this report.

The report stated that since April this year, China has imposed export controls on rare earth magnets, which are widely used in areas ranging from electric vehicle batteries to defense manufacturing. The report exaggerated and sensationalized that this move poses a "major threat" to European industry, while the EU is striving to diversify its supply chains and reduce dependence on China.

On October 30, the spokesperson for the Ministry of Commerce of China introduced during a press conference on the joint arrangements for the US-China economic and trade negotiations in Kuala Lumpur, the achievements reached by the US and Chinese economic and trade teams through the Kuala Lumpur consultations, including: the US will suspend the implementation of 50% of the "penetration rule" it announced on September 29 for one year. China will suspend the implementation of the relevant export control measures announced on October 9 for one year, and will study and refine specific plans.

Previously, China had announced new regulations on export controls involving rare earths on October 9. According to insiders, this move has eased some of the EU's concerns and reduced the likelihood of the EU taking immediate retaliatory actions.

At the same time, the EU is discussing potential countermeasures internally. Bloomberg reported that a Chinese trade official delegation will soon meet with EU counterparts in Brussels, as the EU is seeking a solution that can provide importers with stable supplies and greater certainty, such as establishing a long-term licensing system.

In addition, the EU is developing an emergency plan to deal with any sudden supply chain disruptions and is advancing long-term initiatives aimed at securing and diversifying supplies. The EU is also a member of the G7's proposed key mineral alliance, which aims to cooperate on supply agreements, reserve agreements, and resource sharing.

On October 31, Guo Jia Kun, spokesperson for the Chinese Foreign Ministry, presided over a regular press conference. During the press conference, Reuters reporter asked: Yesterday, the US stated that China announced the suspension of implementing the rare earth export control measures announced on October 9 for one year. Is this applicable to all countries or only to the United States?

"For specific issues, I suggest you ask the relevant Chinese authorities," Guo Jia Kun said.

Previously, on the regular press conference on October 30, a Reuters reporter asked: The US said that China agreed to suspend the implementation of the rare earth export control measures. Can the spokesperson introduce the specific situation? Has China suspended the implementation of the measures issued in October, or has it also suspended the measures issued in April?

To this, Guo Jia Kun said, China has released the statement on the meeting between the leaders of China and the US. You can refer to it. The two sides' economic and trade teams have exchanged in-depth views on important economic and trade issues, and reached a consensus on solving the problem. The two teams should quickly refine and finalize follow-up work, maintain and implement the consensus well.

This article is exclusive to Observer News, and without permission, it cannot be reprinted.

Original: https://www.toutiao.com/article/7567600258658615846/

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