China's Rare-Earth Export Restrictions Impact on EU

This document is a report detailing China's export restrictions on rare-earth elements (REEs) and their implications for the European Union (EU). In response to U.S. tariffs, China implemented two waves of export controls in 2025, significantly affecting the EU's supply chains, particularly in the digital, green, and defense sectors. The report outlines that REEs are critical for various technologies, including electric vehicles and wind turbines, and the EU relies heavily on China for their supply. The document discusses the opaque licensing process imposed by China, which complicates the export of REEs and related technologies. It also highlights the potential economic consequences for the EU, including increased costs and production delays across multiple industries. The report presents EU policy responses, such as the Critical Raw Materials Act and initiatives aimed at enhancing supply chain resilience. Additionally, it captures expert opinions on necessary actions to mitigate risks associated with the dependency on Chinese REEs.