In April 2025, China implemented export restrictions on seven rare earth elements and magnets that are pivotal for the European defence, energy, and automotive sectors. This measure was taken in response to increased US tariffs on Chinese products. Under the new regulations, exporters must obtain additional licenses before exporting these materials from China. The Parliament views China’s actions as unjustified and potentially coercive given its dominant market position.
China possesses a quasi-monopoly on the global export of critical raw materials, including rare earth elements and permanent magnets. These materials are not only essential for industries such as automotive and defence. They are also used in wind turbines, headphones, and Magnetic Resonance Imaging (MRI) machines. The restrictions imposed by China have already begun to impact these sectors.
In a resolution passed with 523 votes in favour, 75 against, and 14 abstentions, the European Parliament has articulated its concerns regarding these export restrictions. Members of the European Parliament (MEPs) emphasise the urgency for the European Union (EU) to identify, operationalise, and bolster areas of critical advantage over China in essential goods and technologies. They express particular concern regarding Chinese demands for sensitive data from applicants seeking export permits.
Furthermore, MEPs are advocating for the expedited implementation of the Critical Raw Materials Act (CRMA), which aims to ensure secure, diversified, and sustainable access to raw materials for the EU. The resolution also emphasises the importance of activating domestic mining projects and urges the Commission and member states to assess the appropriate levels of strategic stockpiling for rare earth elements.
Additionally, MEPs stress the need to establish bilateral partnerships concerning raw materials with countries that uphold high standards for sustainability and human rights. The Parliament underscores the importance of articulating these concerns and their broader implications for global supply chains at the forthcoming EU-China Summit.
