On tackling China’s critical raw materials export restrictions
B-10-2025-0324
on behalf of the PPE Group · Rapporteur: Hildegard Bentele
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This resolution addresses China's export restrictions on critical raw materials, especially rare earth elements, and calls for EU action to reduce dependency and strengthen supply chain resilience.¶¶¶ It urges the Commission and Member States to explore retaliatory or compensatory trade measures, assess security risks from data disclosure, and use the EU-China Summit for dialogue.¶¶¶ It calls for a vertically integrated EU supply chain, accelerated implementation of the Critical Raw Materials Act, and support for diversification through funding and financial tools.¶¶¶ It also calls for reinforced coordination with like-minded partners and enhanced raw materials diplomacy.¶¶
Key points
- Expresses concern over China's near monopoly in rare earth elements and its use of export restrictions and unfair trade practices, calling for retaliatory or compensatory measures.¶
- Warns that China's requirement to disclose sensitive data for export permits risks European security and technology leadership, urging assessment and mitigation.¶
- Calls on the Commission to use the EU-China Summit to raise concerns about export restrictions and licensing requirements.¶
- Urges the Commission to seek concrete improvements in licensing practices, noting that measures like green lanes can only be temporary.¶
- Calls for assessment of the China-US agreement on critical raw materials and enhanced raw materials diplomacy to prevent future export bans.¶
- Underscores the need for a vertically integrated EU supply chain for permanent magnets, including mining to recycling, and asks for measures to collect and retain rare earth elements.¶
- Welcomes first strategic projects under the Critical Raw Materials Act and stresses the need to accelerate its implementation, highlighting the role of the European Raw Materials Board.¶
- Requests EU-level support for diversification, including funding under the Competitiveness Fund, preference clauses, and financial tools like price floors and stockpiling.¶
- Calls for reinforced coordination with G7, NATO, and Japan, and for concluding clean trade and investment partnerships and strategic partnerships on raw materials.¶
Who is affected
- European companies relying on rare earth elements face supply delays and potential production disruptions.¶
- The Commission and Member States are called on to take various actions, including trade measures and support for supply chains.¶¶¶
- China is the target of concerns and calls for dialogue and changes to its export practices.¶¶