EU Warns of Trade Retaliation Over China’s Rare-Earth Export Curbs
The European Union has raised alarms over China's recent tightening of export controls on rare earths and battery materials, calling it a "significant risk." Ursula von der Leyen, speaking at the Berlin Global Dialogue, highlighted the bloc's collaboration with G-7 nations on a coordinated response. "All instruments in our toolbox are on the table," she said, signaling potential trade retaliation.
French President Emmanuel Macron has urged EU leaders to consider invoking the Anti-Coercion Instrument (ACI), a never-before-used trade measure designed to counter economic pressure. The ACI WOULD allow the EU to impose tariffs, restrict Chinese investment, or exclude Chinese tech firms from public contracts. Brussels views the tool as a deterrent, but its deployment grows likelier as China's curbs threaten Europe's access to critical EV and defense materials.
