BRUSSELS (Realist English). Amid mounting pressure on European industries, EU Trade Commissioner Maroš Šefčovič held a phone call on Tuesday with Chinese Commerce Minister Wang Wentao to discuss Beijing’s new restrictions on rare earth exports — a move that has deepened tensions between China and the West.
“We have no interest in escalation,” Šefčovič said after what he described as a “constructive” two-hour conversation. He added that he invited Wang to Brussels “for a prompt resolution” of the dispute, an offer that the Chinese minister accepted.
The call comes after China announced on October 9 new export controls on rare earth materials — key components for high-tech, automotive, and defense industries. The rules require exporters to obtain government licenses and disclose how their products will be used, measures that Šefčovič last week called “unworkable” for European firms given the complexity of China’s approval system.
According to the International Energy Agency, China accounts for 60% of global rare earth production and 90% of refining capacity, leaving the EU heavily dependent on Chinese supply.
“The new wave of Chinese export controls could disrupt production and raise costs,” warned European Commission President Ursula von der Leyen on Tuesday. She said the EU’s response would focus on diversifying supply chains through global trade agreements and expanding recycling capabilities.
So far, only half of European companies’ license applications for rare earth exports have been approved by China, Šefčovič noted. The situation has alarmed major European manufacturers, including Volkswagen, Stellantis, Siemens, Bosch, Solvay, and Umicore, which took part in an emergency videoconference Monday led by EU Industry Commissioner Stéphane Séjourné.
While officials acknowledged that no single policy solution fits all sectors, Brussels is considering creating a joint EU purchasing and storage mechanism to mitigate disruptions.
The issue is expected to surface during the EU leaders’ summit on Thursday, though no formal discussion is planned. A senior EU official said the topic could be addressed within broader debates on competitiveness and green technology, “with a message of economic security likely to be included.”
Beijing’s decision follows renewed friction with the United States, where President Donald Trump’s administration has reintroduced tariffs and expanded the blacklist of Chinese companies. Reciprocal trade duties between the world’s two largest economies had briefly reached over 100% earlier this year before being reduced under a May truce in Geneva.
Šefčovič emphasized that maintaining stable relations with Beijing remains critical: “We are ready to work toward solutions — but Europe must protect its industries and ensure a fair, predictable trade environment.”
