EU Urges China to Ease Rare Earth Export Controls Amid Industry Crisis

The European Union is urging China to lift export restrictions on rare earth minerals and magnets, which are crucial for manufacturing sectors such as automotive, aerospace, and high-tech industries. China controls over 90% of the world's rare earth supply and imposed export controls in April as retaliation against U.S. President Donald Trump's tariffs, exacerbating global supply chain disruptions. EU officials and industry leaders warn of an "alarming situation" with some European production lines at risk of halting due to the shortage of these critical materials. The restrictions have led to a backlog of export license applications in China, causing delays and prompting calls for diversification of raw material sources to reduce dependency, particularly on China. Automakers like BMW and organizations such as the European CLEPA are lobbying for government intervention and exploring alternatives to mitigate the impact. The ongoing trade tensions underscore the fragility of international supply chains and the urgent need for diplomatic efforts to resolve the situation and stabilize global markets.