EU Considers Countermeasures Amid China Rare Earth Export Curbs Impacting Millions of Jobs

The European Union is actively preparing countermeasures in response to China's restrictions on rare earth element exports, which are critical for technology and defense industries. EU Economy Commissioner Valdis Dombrovskis indicated that the Commission is considering various trade options to protect supply chains and is coordinating efforts with international partners, including discussions at the G7 finance ministers' meeting. Meanwhile, Germany faces significant economic risks, with up to four million jobs potentially endangered and billions in industrial output at risk should China impose a permanent export ban, given its dominant control over rare earth production and processing. The United States is similarly affected by China's export controls but is strengthening ties with Australia to secure alternative rare earth sources. These developments highlight the geopolitical importance of rare earth minerals, essential for high-tech economies and national security, as global powers seek to mitigate dependence on China amid rising trade tensions.