EU Commission concerned about China's decision on rare earths exports

EU Commission concerned about China's decision on rare earths exports

The European Commission has voiced its concerns over China's recent decision to tighten export restrictions on rare earth-related items and technologies. The move, announced by China's Ministry of Commerce on October 9, aims to safeguard national security and interests by preventing sensitive materials from ending up in the hands of foreign militaries .

The new restrictions, outlined in Announcement No. 61, bar the sale of rare earth items to foreign military entities and related firms, as well as some semiconductor-related companies. Announcement No. 62 restricts the export of technologies related to rare earth mining, smelting, separation, and other related processes, as well as the assembly, debugging, maintenance, and repair of related production lines .

The EU Commission's spokesperson stated that these restrictions pose significant challenges to the bloc's supply chain and could disrupt the production of high-tech and dual-use products. The Commission is particularly concerned about the potential impact on the European semiconductor industry, which relies heavily on Chinese rare earth materials .

The move comes amid growing tensions between the U.S. and China over semiconductor exports. The U.S. House of Representatives' Select Committee on China released a report stating that U.S. and allied-nation companies had "fueled" semiconductor manufacturing in China, potentially aiding Beijing's military modernization efforts .

The EU Commission has called for a coordinated response with its allies to address these challenges. It has urged China to engage in constructive dialogue and to consider the broader implications of its export policies on global trade and security .