EU should think twice before weaponizing market against Chinaweaponizing market against China
The European Union is considering restrictions on its market toward China, even though China supplies 100 percent of the EU's heavy rare earth elements, 85 percent of its light rare earth elements, and 97 percent of its magnesium imports needed for technology and climate goals.
This debate matters because any move to weaponize the market could disrupt the EU's digital and green transitions, which depend entirely on these Chinese imports.
Officials in the EU must now weigh political pressure against the risk of severe supply shortages.
Chinese State Media
Chinese media and state commentators argue that the EU's proposed market restrictions are an act of economic aggression that ignores China's indispensable role in supplying critical minerals for the EU's own technology and climate goals.
Asian Business Media
South China Morning Post and other Asian business outlets frame the EU's moves as a risky policy of market weaponization that could trigger supply shortages and undermine the digital and green transitions the EU claims to support.
- China discovered its first major rare earth deposit in Baiyun Obo in 1957, which later became the world's largest source.
- The EU launched its Critical Raw Materials Act in 2023 to reduce import dependence, but domestic production remains minimal.
- Magnesium production in China accounts for more than 90 percent of global output, with most refining capacity located in Inner Mongolia.
