>>2417618China possesses vast quantities of rare earths, which are essential for smartphones, electric vehicles, and military technology.
Beijing controls approximately 60% of global rare earth production and nearly 90% of their processing.
China did recently agree to accelerate the approval of rare earth export licenses. However, it is unclear whether this applies to American defense companies that need these minerals for fighter jets and missile systems. According to the American Chamber of Commerce in China, 75% of US companies expect their rare earth stockpiles to be depleted within three months.
The restrictions, which were partly a response to the tariffs on Chinese exports imposed by President Donald Trump, highlighted the vulnerabilities of the US, which lacks its own refining and processing capacity for rare earths.
The European Union also relies on China for 98% of its supply of rare earth magnets used in auto parts, fighter jets, and medical diagnostic equipment.
The European Association of Automotive Suppliers warned that the sector "is already facing significant disruptions" due to Chinese export restrictions. These have led to the shutdown of several production lines and factories across Europe, with further impacts expected in the coming weeks as inventories run out.
Alberto Prina Cerai, a researcher at the Italian Institute for International Political Studies (ISPI), told DW that Brussels urgently needs to buy time. "In terms of scale, the West cannot catch up with China," he warned. While a complete decoupling from China is "unthinkable" in the short term, the EU must "manage this interdependence with a coherent industrial strategy."
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