The European Union is taking a bold step towards reducing its dependency on China. EU Commissioner for Industrial Strategy Stéphane Séjourné has called on member states to unite and establish a strategic reserve of rare earth elements — critical materials for defense, electric vehicles, and renewable energy.

🔹 Brussels Arms Itself Against Economic Pressure from Asia

In an interview with the German daily Handelsblatt, Séjourné argued that Europe should, just like it has oil and gas reserves, also maintain stockpiles of rare earths and other raw materials. These resources are essential for Europe’s competitiveness in the green transition and high-tech sectors.

His proposal comes just weeks after China unexpectedly imposed export restrictions on rare earth magnets, disrupting European companies and prompting emergency talks with Beijing officials.

🔹 Strengthening Supply Chains and Strategic Autonomy

As a response, the EU announced 13 new raw material projects outside its borders to reduce reliance on Chinese supply chains. Brussels is determined to regain control over critical resources and protect its industries from geopolitical shocks. According to Séjourné, Europe must start using the same economic “weapons” as its global competitors.

The EU also plans to launch new tenders to support mining and refining activities within trusted regions.

🔹 China Shows Willingness to Negotiate — Cautiously

In June, China acknowledged the EU’s concerns and promised to expedite export license processes for rare earth deliveries. However, the EU remains cautious, as China’s discretionary power over licenses has often been used for political leverage.

This will be a key topic during the upcoming EU-China summit in July, where European leaders hope to secure stable, long-term agreements.

🔹 Behind the Curtain: Tariffs, EVs, and Tech Rivalry

Meanwhile, tensions are also rising in other areas. The EU recently imposed tariffs on Chinese electric vehicles, citing unfair state subsidies. Ongoing negotiations about pricing commitments are still in progress.

Conclusion: Europe is waking up from its raw material dependency on China. Establishing strategic reserves of rare earth elements is not only a practical move but also a strong political statement: the EU is striving for sovereignty in key areas and is ready to counter external economic pressure.



#Eu , #china , #Geopolitics , #TradeWars , #TradingCommunity

Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!

Notice:

,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“