European Commission President Ursula von der Leyen has warned that the European Union is ready to deploy “all tools” at its disposal in response to China’s sweeping export controls on rare earth elements, a move that has disrupted global supply chains and rattled European industries.
The restrictions, imposed by Beijing on October 9, have intensified global concerns over access to critical minerals used in manufacturing electric vehicles, renewable energy systems, and advanced military technologies. China, which produces around 60% of the world’s rare earths and controls 90% of refining capacity, expanded its list of restricted minerals from seven to twelve, in what many see as retaliation for US tariffs.
Speaking over the weekend, von der Leyen said the EU “will not hesitate to act” if discussions with Beijing fail to restore stable trade conditions. “In the short term, we are focusing on finding solutions with our Chinese counterparts,” she said. “But we are ready to use all of the instruments in our toolbox to respond if needed.”
Her remarks came as EU officials prepared for emergency talks with Chinese representatives — beginning with a video conference on Monday, followed by in-person negotiations in Brussels later this week. The meetings come amid escalating global trade tensions, with US President Donald Trump and Chinese leader Xi Jinping also set to meet Thursday in South Korea to discuss their ongoing trade war.
The current standoff traces back to Washington’s decision in April to impose a 34% tariff on Chinese imports, raising total duties to 54%. Beijing responded by weaponising its dominance in rare earth exports, restricting supplies crucial to Western industries. Though the measures primarily target the United States, European manufacturers have been caught in the crossfire, struggling to secure the licenses required to import critical minerals.
European Council President António Costa raised the issue directly with Chinese Premier Li Qiang on Monday during the ASEAN summit in Kuala Lumpur. “I shared my strong concern about China’s expanding export controls on critical raw materials,” Costa said, urging Beijing to restore “fluid and predictable supply chains.”
Von der Leyen hinted that Brussels could invoke the EU’s Anti-Coercion Instrument — a 2023 mechanism allowing the bloc to impose countermeasures such as tariffs, procurement bans, or restrictions on intellectual property rights against countries engaging in economic coercion.
Meanwhile, the European Commission is pursuing a “de-risking” strategy aimed at reducing dependence on Chinese minerals. Over the weekend, von der Leyen announced RESourceEU, a new initiative to coordinate joint purchasing and stockpiling of rare earths, and to support European production and processing projects.
“We will speed up work on partnerships with countries like Ukraine, Australia, Canada, and Chile,” she said, adding that diversification is essential to safeguard Europe’s industrial resilience.
As diplomatic talks continue, tensions remain high. A planned ministerial meeting between EU Trade Commissioner Maroš Šefčovič and his Chinese counterpart Wang Wentao was abruptly cancelled, replaced by technical-level discussions — a sign of the deepening rift between Brussels and Beijing over critical raw materials.
