EU Prepares Trade Options to Counter China Rare Earth Curbs

The European Union is preparing trade options to address China's proposed export restrictions on critical raw materials, such as rare earth elements. This move comes as the EU seeks to find a diplomatic solution with China, but is also preparing contingency plans. The EU relies heavily on imports of these materials, which are crucial for various industries, including green technologies. China controls a significant portion of the global supply of rare earth elements, and any disruption in exports could have severe consequences for the European economy. The European Commission is exploring trade measures, including potentially filing a case with the World Trade Organization, to ensure a stable and reliable supply of these critical raw materials. The EU is also working to diversify its sources and increase domestic production to reduce its dependence on Chinese exports. The situation highlights the ongoing geopolitical tensions and the need for the EU to strengthen its strategic autonomy in key sectors to mitigate potential supply chain disruptions.