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EU industry at risk from Chinese restrictions on rare earths warns Renew Europe
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Hugues Stéphane Beaudouin
November 26, 2025
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EU industry at risk from Chinese restrictions on rare earths warns Renew Europe

Renew Europe calls on the European Union to take decisive action against China's unacceptable weaponisation of trade through unjustified export controls on critical raw materials, rare earths and magnets. These minerals are vital to strategic industries including aerospace, defence and advanced manufacturing, making them central to Europe's energy security, economic resilience and sovereignty.

The consequences are direct and severe. When a Dutch company trades with a German company on a product containing just 1% rare earth materials, China must approve the transaction. This is unacceptable. Europe cannot remain passive in the face of Chinese coercion targeting our businesses.

China is tightening its grip on global supply chains through coercive measures that extend control far beyond its borders. While the suspension of the latest export control measures is welcome, previous restrictions imposed earlier this year remain in force. The EU cannot lower its guard.

MEP Karin Karlsbro (Liberalerna, Sweden), acting Renew coordinator for the committee on international trade, stated :

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"In a time of coercion and blackmail in international trade, the European Union must diversify and deepen partnerships around the world to reduce harmful dependencies. A strong economic security strategy depends on open markets, fair competition, and rules-based trade."

Karin Karlsbro
Renew Europe MEP, Sweden, Liberalerna

Renew Europe MEP Bart Groothuis (VVD, Netherlands) emphasised :

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"If we don’t act, Europe is deindustrialising faster than we are derisking. China is imposing intentional and brutal restrictions on rare earths minerals. While Japan and the US responded to similar restrictions with speed and ruthlessness, the EU still has no tangible results after three years. So act! Europe must build a new trade and industrial framework to secure access to critical materials. But without trade protection, Resource EU investments will leak away. Let’s build a new business case, as Japan and the US have demonstrated. Mine, refine, and define our own future.”

Bart Groothuis
Renew Europe MEP, Netherlands, Volkspartij voor Vrijheid en Democratie

An updated European economic security strategy must give the EU leverage with trading partners who refuse to be coerced by China and secure fair, competitive, rules-based trade internationally. Europe must build its own industrial capabilities for extraction and refining to break free from dependence on China and diversify sourcing among trading partners worldwide.

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Karin Karlsbro
Bart Groothuis