Politics7/23/2025Bloomberg

EU Wrestles With China’s Chokehold Over Crucial Defense Supplies

The European Union is grappling with China's dominant control over the supply of crucial defense materials, particularly rare-earth metals. China, which accounts for over 90% of global rare-earth production, has effectively cut off direct access to these resources for European traders. This has triggered a desperate scramble among European companies to find alternative sources and secure their supply chains. The issue has become a significant concern for the EU, as these rare-earth metals are essential components in a wide range of high-tech and defense-related products. The European Union is now exploring strategies to reduce its reliance on China and diversify its sources of rare-earth supplies, recognizing the strategic importance of maintaining control over these critical materials. The situation highlights the broader geopolitical tensions surrounding the global distribution of key resources and the need for the EU to strengthen its economic and technological resilience in the face of potential supply chain disruptions.

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