In a resolution adopted recently, the European Parliament expressed concerns over China’s export restrictions on critical raw materials. These restrictions were imposed by China on April 4, 2025, affecting seven rare earth elements and magnets crucial to the defense, energy, and automotive sectors. This move was in response to increased U.S. tariffs on Chinese products.
The new regulations require exporters to obtain additional licenses before exporting from China. The resolution, which passed with 523 votes in favor, 75 against, and 14 abstentions, criticized China’s actions as unjustified and coercive due to its dominant position in these markets.
Members of the European Parliament (MEPs) highlighted the necessity for the EU to leverage its strengths in essential goods and technologies. They voiced concerns about China’s demands for sensitive data disclosure from export permit applicants.
The European Commission and member states are urged to expedite the Critical Raw Materials Act (CRMA), which aims to secure diversified and sustainable access to raw materials for the EU. The resolution also emphasized activating domestic mining projects within the EU and assessing strategic stock levels of rare earth elements.
Additionally, MEPs advocated for forming bilateral partnerships with countries that uphold high sustainability and human rights standards regarding raw materials. The importance of addressing these issues at the upcoming EU-China Summit was also stressed.
China’s control over critical raw materials affects various industries including automotive, defense, wind turbines, headphones, and MRI machines. The recent restrictions have already had an impact on these sectors.
