EU Urges Fair Trade with China Amid Rare Earth Supply Concerns and U.S. Tariff Challenges
June 14, 2025
Concerns have been raised regarding China's trade practices, including subsidies and market access barriers, which require urgent attention from EU officials.
The EU is also worried about the impact of the U.S. decision to double tariffs on steel imports, arguing that it negatively affects global trade and pressures European steelmakers.
The European Union is advocating for fair trade relations with China, emphasizing the need for balanced economic growth that does not harm European industries.
As trade negotiations approach, the EU is exploring defensive measures to protect its domestic industries while striving to maintain economic cooperation with China.
China's control over 90% of rare earth processing and its recent export curbs have complicated the EU's supply chain, particularly in light of tariff announcements.
Maros Sefcovic, the EU trade chief, has highlighted the importance of transparency and stable supplies, especially concerning magnets affected by Chinese export policies.
The trade dispute between the EU and China has escalated with Donald Trump's return to the White House, leading to overlapping tariffs and pressure on firms to relocate production to the U.S.
There are growing concerns about trade diversion due to U.S. tariffs, with fears that inexpensive Chinese goods may undermine local manufacturers in Europe.
At an international economic summit, EU officials stressed the necessity of easing controls on rare earth minerals, which are essential for European industries.
The EU has criticized China's restrictive policies, arguing that they undermine confidence in the global trade system that has historically benefited China.
Maria Martin-Prat, the EU's deputy trade chief, warned China to address grievances or face potential retaliatory actions, as the EU is prepared to implement autonomous trade measures.
Ahead of a leaders' summit in July, the EU is pressing for structural reforms in China's economy to improve market access in strategic sectors like agriculture and cosmetics.
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