On November 1, the Chinese side confirmed that the export control measures on rare earths have been extended to the EU. Brussels was clearly stunned by this statement.
That day, EU Trade Commissioner Maros Sefcovic announced China's confirmation: the rare earth export control measures announced in October will also apply to the EU.
Throughout this year, the EU has been preparing for this moment, but when it finally arrived, Brussels still seemed unprepared. The EU's consumption of rare earth permanent magnets relies on imports from China for as much as 98%.
These materials are essential for Europe's most strategically important industrial sectors, such as automotive, defense, and aerospace.
Data from the International Energy Agency shows that China not only accounts for more than 60% of global rare earth mine production, but also controls 92% of global rare earth processing output. This near-monopoly position leaves the EU with almost no alternatives in the short term.
The EU is preparing to implement a new strategy, including accelerating the establishment of key raw material partnerships with resource-rich countries such as Australia and Canada; improving recycling capabilities; and investing in production and processing within the EU through joint procurement, strategic reserves, and investments.
The G7's current plan is to establish a "Critical Mineral Production Alliance," which will include purchase agreements, i.e., commitments to buy a certain percentage of minerals at a fixed price, with price floors and reserve mechanisms. It is clear to anyone who looks that this is aimed at someone specific.
The Chinese side stated: "As long as European companies comply with export control regulations and fulfill the necessary procedures, their normal needs can be guaranteed."
Original: www.toutiao.com/article/1847649074202633/
Statement: The article represents the personal views of the author.