The export controls are meant to keep Brussels from cozying up to the Trump administration as the EU looks to make a deal after the mercurial president slapped the bloc with 50 percent tariffs.
“This is China’s way of building pressure to avoid any alignment with the U.S.,” said Bouchard. “It’s a pretty powerful lever that’s triggered a lot of concern in Europe.”
EU trade chief Maroš Šefčovič raised the “alarming situation” with his Chinese counterpart Weng Wentao during a meeting in Paris this week.
“We are working hard to drive progress ahead of the leaders’ summit in July, which I trust will create fresh momentum to reshape our economic and trade relations,” he said during his opening speech at the Brussels Economic Security Forum summit.
The summit coincided with an announcement of 13 projects selected as part of the EU’s Critical Raw Materials Act, which is meant to reduce the bloc’s dependency on China. No more than 65 percent of some raw materials can come from a single country under the law.
“Export bans obviously do tend to strengthen our will to diversify further,” said Industry Commissioner Stéphane Séjourné.
That does little to help the sector now, however. China controls 90 percent of the rare earth mineral market, leaving suppliers and automakers at Beijing’s mercy.