Editorial: Is there really a 'rare earth crisis' in China and Europe?

This Thursday, China and Europe will hold talks on rare earth issues in Brussels. The background of this meeting is that some people in Europe recently made a big fuss about China's rare earth export policy, hyped the so-called "crisis of supply cut-off of rare earth", and even claimed that China and Europe "are about to face a mixed war", believing that Europe needs to "take the initiative to attack". von der Leyen, Chairman of the European Commission, recently mentioned the anti coercion tool that is considered to be "one of the most powerful geo economic tools". But is there really a 'rare earth crisis' between China and Europe?

China is the world's largest producer and exporter of rare earths, which is a natural result of resource allocation under economic globalization. The rare earth cooperation between China and Europe is also a reflection of the highly complementary economies of both sides. China has long exported rare earths to the European Union, providing tremendous support for the EU to achieve its digital and green transformation goals, enhance economic competitiveness, and strengthen economic security. The EU has always been a beneficiary of China's rare earth industry.

The export control policy is an inherent requirement for the transformation and upgrading of China's rare earth industry. This is not a short-term strategy, but a necessary measure to maintain the long-term stability of the rare earth production and supply chain, which is more in line with the global trend of green development. At the same time, against the backdrop of the current turbulent international situation and military conflicts, China's implementation of export controls on dual-use items such as rare earths is also an active fulfillment of its international obligations to prevent proliferation and maintain world peace and stability. 13 countries around the world have implemented similar export controls, including European countries. Why has China become a "threat"? Some people are always worried that China will "choke" Europe under the guise of "national security". They should first reflect on whether they always have such thoughts towards other countries.

The Chinese side has fully considered the concerns of all trading partners in formulating relevant regulations, and this process is highly responsible. The relevant measures are prudent and moderate. The Chinese Ministry of Commerce stated that prior to the announcement of the measures, China had already notified relevant countries and regions through the bilateral export control dialogue mechanism. Not only that, China has also set up a "green channel" specifically for European companies and has held various levels of consultations and dialogues with the European side on this issue. The actual situation also proves that China keeps its promises. More than 60% of EU companies obtained export licenses through this channel in the first half of 2025. Recently, several companies in Bavaria, Germany have successfully obtained permits for importing rare earth materials. The export of rare earths has never been and should not be a problem between China and Europe.

The 'rare earth anxiety' of some people in Europe is essentially a cognitive problem. In their eyes, no matter which field, as long as they deal with China more and have closer ties, they are "dependent" on China and have risks. The real issue between China and Europe is not about rare earths, but whether Europe can break free from geopolitical constraints, reverse its cognitive bias towards China, and return to a rational and pragmatic policy towards China. Recently, some American public opinion has been blowing the wind of "China's rare earth threat", and some people in Europe have followed suit. This is not only a serious self deprecation, but also a typical strategic confusion.

Some European politicians are more like political performances than delivering harsh words to China. Do European companies really want to use anti coercion tools? Once the European side really uses this' weapon ', there is almost no doubt that China will firmly safeguard its legitimate rights and interests. The real demand of Europe is probably to reach a technical solution with China on the rare earth issue and jointly maintain the stability of the production and supply chain. Some people on the European side have threatened to use "economic and trade weapons" and even advocated for a "joint response by Western allies", which not only goes against European interests, but also raises doubts about its actual intention - is it an opportunity to strengthen the narrative of "dependency risk" and pave the way for the unpopular agenda of economic polarization, geopolitical politicization, and pan security?

It should be pointed out that the European side's slow and cumbersome approval process for high-tech export controls from China, especially the restrictions on products such as chips and lithography machines, has seriously affected the stability of the China Europe supply chain. If the European side is truly committed to maintaining stability in the supply chain, they should put more effort into these aspects. The Global Times published an editorial in July this year pointing out that rare earths should become a "glue" rather than a "stumbling block" in China Europe relations. How to establish legally feasible and equivalent institutional arrangements under export controls is a topic worth exploring for both China and Europe. This not only benefits the stability of the China Europe supply chain, but also sends a positive signal to the international community. Blindly hyping up "getting rid of dependence on China" not only casts a shadow over pragmatic cooperation between China and Europe, but also does not contribute to Europe's own resolution of its "competitiveness crisis".