Commission must tackle China’s export restrictions on rare earth elements

China has a quasi-monopolistic position on the global market

The EU must accelerate the implementation of the Critical Raw Materials Act

Partnerships needed with countries meeting high sustainability and human rights standards

In a resolution adopted on Thursday, Parliament set out its concerns about Chinese export restrictions on critical raw materials.

On April 4 2025, China imposed export restrictions on seven rare earth elements and magnets used in the defence, energy, and automotive sectors as a response to increased U.S. tariffs on Chinese products. Under the new rules, exporters will need additional licences before being able to export from China.

In a resolution, adopted by 523 votes in favour, 75 against and with 14 abstentions, Parliament says China’s action is unjustified and is intended to be coercive given the country’s quasi-monopolistic position. MEPs stress the need for the EU to identify, operationalise and strengthen areas it holds critical advantages over China in essential goods and technologies. They are deeply concerned about Chinese demands for export permit applicants to disclose sensitive data. The Commission and member states must accelerate the implementation of the Critical Raw Materials Act (CRMA), MEPs say. The CRMA aims to ensure the EU has secure, diversified and sustainable access to raw materials.

The resolution also underlines the need for the EU to activate domestic mining projects and calls on the Commission and member states to assess the minimum level of strategic stocks of rare earth elements. MEPs call for concluding bilateral partnerships on raw materials with countries that meet high sustainability and human rights standards.

Parliament underlines the importance of the EU stating these concerns and their broader implications for global supply chains at the upcoming EU-China Summit.

Background

China has a quasi-monopoly on the export of critical raw materials, rare earth elements and permanent magnets. These are used in industry, such as the automotive and defence industries, but also in wind turbines, headphones, and MRI machines. The Chinese restrictions have already impacted these industries.