Critical Materials Clamp
Brussels
French President Emmanuel Macron has called on European Union leaders to consider using the bloc’s most powerful trade defense tool against China if talks fail to resolve Beijing’s new export restrictions on rare earth materials. Speaking during the EU leaders’ summit in Brussels, Macron said Europe must be ready to act firmly in response to what he described as “economic coercion.”
China recently announced strict controls on exports of rare earths and other critical materials, requiring overseas exporters to obtain licenses if their products contain even traces of these resources. The move has raised alarm across Europe, where such materials are vital for industries like electric vehicles, energy, and defense manufacturing.
“We can see the impact it is having on us, and we need to be able to respond,” Macron told reporters after the meeting. He urged the bloc to weigh using all available options, including the EU’s anti-coercion instrument (ACI) — a trade mechanism designed to counter pressure from foreign governments.
German Chancellor Friedrich Merz confirmed that leaders discussed the ACI but reached no decision. He said the matter now lies with the European Commission, which manages EU trade policy.
The ACI, created after trade disputes with the U.S. and China, allows the EU to impose tariffs, restrict investment, or block companies from public contracts. While it has never been used, France has previously pushed for its activation during major trade disagreements.
EU Trade Commissioner Maros Sefcovic said talks with Chinese officials continue, stressing the need for a diplomatic resolution to avoid further escalation.
