European Firms Face $290M+ Cost Surge From China Export Curbs

European businesses in China anticipate significant cost increases as Beijing tightens export controls on critical materials. One company projects €250 million ($290 million) in additional expenses, while another estimates a 20% cost hike relative to global revenue by 2025, according to a European Union Chamber of Commerce survey conducted November 6-24.

The restrictions—China's retaliation for U.S. tariffs—have prompted one-third of affected firms to seek alternative suppliers outside China. The MOVE underscores European dependence on Chinese supply chains for rare earths and advanced technologies, with disruptions now cascading through procurement strategies.

Beijing temporarily suspended broader controls that WOULD have blocked minor rare earth content in exports, a concession made during U.S. trade negotiations. Progress on establishing streamlined general licenses remains stalled past the Thanksgiving deadline, leaving companies in operational limbo.

"Implementing a general licensing system would provide immediate relief," said Stefan Bernhart, European Chamber Vice President, as firms navigate the most significant supply chain upheaval since the trade war began.