World

EU Confronts China Over Rare Earth Export Controls: What’s at Stake for Global Trade?

China‘s officials will meet in Brussels to address rare earth export controls, causing global trade tensions.

byAndres Castro

October 27, 2025, 11:39 AM

A close-up macro shot of dark, shiny Germanium crystals.

Samples of the rare metalloid Germanium. By LuYago / Shutterstock.com.

Executive Summary

High-level Chinese officials are expected in Brussels to address Beijing’s recent export controls on rare earth materials, which have heightened global trade tensions.

European Council President Antonio Costa stated that China is uniquely positioned to help end the conflict between Ukraine and Russia, suggesting Beijing underestimates its influence over Moscow.

The EU plans to finalize trade agreements with several Southeast Asian nations and will not dispatch observers to Myanmar’s upcoming election, underscoring non-recognition of its military-led administration.

The Story So Far

The upcoming discussions between the EU and high-level Chinese officials are set against a backdrop of heightened global trade tensions, primarily due to China’s recent export controls on rare earth materials. China dominates over 90% of the global supply of these critical elements, which are indispensable for high-tech manufacturing, making its restrictions a significant concern for the EU. Additionally, the EU is pressing China to leverage its considerable influence over Russia to help resolve the ongoing conflict in Ukraine.

Why This Matters

The impending high-level discussions in Brussels regarding China’s rare earth export controls are crucial, as their outcome will directly impact global supply chains and the production of critical high-tech components for industries such as electric vehicles and defense. Concurrently, the EU is pressing China to utilize its significant influence to facilitate an end to the conflict in Ukraine, indicating a potential shift in geopolitical dynamics if Beijing chooses to engage more actively. Additionally, the EU’s pursuit of new trade agreements in Southeast Asia highlights a strategic effort to diversify economic partnerships and enhance regional stability.

Who Thinks What?

European Council President Antonio Costa is concerned about China’s expanded export controls on rare earth materials, which he believes contribute to global shortages, and he also suggests China is uniquely positioned to facilitate an end to the conflict between Ukraine and Russia, underestimating its influence over Moscow.

China has implemented export controls on rare earth materials, dominating the global market, actions that have heightened global trade tensions and contributed to a shortage of critical raw materials.

European Council President Antonio Costa announced on Monday that high-level Chinese officials are expected in Brussels in the coming weeks to address Beijing’s recent export controls on rare earth materials, measures that have heightened global trade tensions. Speaking on the sidelines of the ASEAN summit in Kuala Lumpur, Costa expressed significant concern over China’s expanded restrictions, which he noted have contributed to a global shortage of these critical raw materials.

Rare Earth Export Controls

China currently dominates the global market, controlling over 90% of the world’s supply of rare earth materials. These elements are indispensable for various high-tech manufacturing sectors, including electric vehicles, semiconductors, and advanced defense systems like missiles. The European Union aims to resolve these trade issues through diplomatic engagement.

Geopolitical Dynamics

During his interview, Costa also stated that China is uniquely positioned to facilitate an end to the conflict between Ukraine and Russia. He further suggested that Beijing appears to underestimate the significant influence it wields over Moscow in this geopolitical situation.

Regional Trade and Elections

Additionally, the European Council President indicated that the EU intends to finalize trade agreements with several Southeast Asian nations soon. These include Malaysia, Thailand, and the Philippines, reflecting the bloc’s broader engagement in the region following his participation at the ASEAN leaders’ meeting.

Costa confirmed that the EU would not dispatch observers to the upcoming election in Myanmar. This decision underscores the European bloc’s stance of non-recognition regarding the authority of the military-led administration currently governing the country.

Outlook

Costa’s remarks highlight the EU’s multifaceted engagement with China, ranging from critical trade disputes over essential raw materials to calls for Beijing’s increased role in global conflict resolution. The upcoming high-level discussions in Brussels will be closely watched for their potential impact on global supply chains and international diplomacy.