The trade tension between the European Union and China seems to be entering a new phase, after European Economic Commissioner Valdis Dombrovskis revealed that Brussels is considering taking countermeasures against the Chinese restrictions on rare earth metal exports, a move that could reshape the industrial balance between the two continents.
Dombrovskis stated in an interview with the German newspaper "Handelsblatt" that the European Union has not yet defined the tools it might use, but stressed that discussions are ongoing at a high level within the European Commission and with international partners, noting that the issue was recently raised at a meeting of the G7 finance ministers in Washington.
He added that the European Union seeks to avoid a direct trade escalation with China, but at the same time will not stand idly by in the face of policies that undermine European supply chains, especially in the technological sectors and clean energy which rely on rare earth metals as a key component in the production of batteries, electric motors, and semiconductors.
Despite signing an agreement last July to accelerate the shipments of raw materials to Europe, China continued to impose strict controls on rare earth metal exports, and even announced this month expanded restrictions that included new types of strategic elements, which EU officials considered a direct challenge to the continent's industrial competitiveness.
For his part, European Trade Commissioner Maroš Šefčovič confirmed that he will soon meet with Chinese authorities to find "urgent" solutions that ensure the continued flow of these vital metals to European markets without additional obstacles.
This step is expected to mark the beginning of a new chapter in the economic conflict between the European Union and China, as rare earth metals have become a strategic weapon in the race for global industrial and technological influence.
