The Socialists and Democrats in the European Parliament express serious concern over China’s announcement introducing sweeping export controls on rare-earth minerals and related technologies. These controls, framed as measures to protect national security, are poised to tighten China’s dominant hold over critical materials essential to global high-tech and green energy industries.

Rare-earth minerals are vital to numerous technologies – from smartphones and electric vehicles to renewable energy systems and defence applications. China’s overwhelming control of the supply chain – accounting for over 70% of mining and more than 90% of processing and magnet manufacturing – gives it unprecedented leverage that risks destabilising global markets and undermining fair competition.

The S&Ds again call on the Commission and the member states to accelerate efforts to develop a diversified and resilient rare-earth supply chain independent of any single country. The EU needs to invest in a truly circular economy, while developing a clear strategy on economic security, in cooperation with like-minded global trade partners.

Kathleen Van Brempt, S&D vice-president responsible for trade and shadow rapporteur on China, said: 

“This is a new wake-up call for Europe. It concerns raw materials that are crucial for Europe’s sustainable and digital transition. We need them for our batteries, wind turbines, cars, chips, etc. The fact that one country is able to hold a knife to our throat at the snap of a finger is a fundamental problem. Europe must now really accelerate its efforts to reduce its dependency on critical raw materials, by diversifying supply and fully committing to a circular economy in which these strategically important raw materials are no longer lost.

“At the same time, the Commission must quickly draw up a European strategy on economic security to identify the weak spots in our global economy – both in the short and long term – and to figure out where the European Union is vulnerable and which levers we do hold. This is more than an internal theoretical exercise. Concrete measures must be developed to deal with economic coercion. Both at the European and national level.

“Today, the policy on export controls is a patchwork. If we want to strengthen our position towards China and the US, we need one single approach. 

“We are in this together – and not only because countries like Canada, Japan and Australia are crucial partners for diversifying supply chains and reducing our dependence on China. If we align our policies, we can respond much more efficiently and accurately in the face of brutal trade practices today.

“Dependency is our main vulnerability. Today, it is being used against us. That is the lesson we are once again learning from Beijing’s decision. But Europe can only become economically resilient if it also has the courage to innovate, to go sustainable and to cooperate.”