The EU is establishing a task force to tackle potential trade crises with China, reflecting growing strategic concerns in Brussels.
The European Commission is creating an emergency task force to prepare for potential crises, including a renewed trade conflict with China. This move reflects Brussels' growing strategic anxiety, as reported by Beijing's Global Times.
The task force will be staffed by officials from various sectors, including industry, trade, finance, aid, and economic departments, as well as the central unit under EC President Ursula von der Leyen. It will explore alternative sources of rare earths and may utilize EU funding to maintain supplies.
Analysts told the Global Times that this mechanism indicates the EU increasingly views economic ties with China through a risk-management lens. Wang Xiaoli of Guangdong University stated that such an approach prioritizes defensive measures over cooperation. Jian Junbo of Fudan University added that the role of the task force could remain limited due to the need for coordination among member states.
Rare earths are central to the ongoing dispute. China accounts for 66 percent of global mined supply and 88 percent of refined output. Last November, China's Ministry of Commerce suspended some export control measures until November 10, emphasizing that these controls are consistent with international practices and aimed at safeguarding peace and stability.
Chinese officials have stated that the demand from European companies will be safeguarded if they comply with regulations, and a 'fast-track' channel has been established to ease procedures. Despite recent dialogue, Brussels is preparing a diversification law that will obligate companies to reduce reliance on single suppliers.
Ms. Wang warned that if EU measures shift from diversification to restrictions targeting Chinese firms, cooperation could be undermined and investment deterred. Jian mentioned that China would take necessary steps to protect its interests if unfair restrictions are imposed.
EU trade spokesman Olof Gill stated that the Commission is intensifying structured dialogue with China. A joint statement following consultations in June noted positive results from the Export Control Dialogue and pledged further efforts to stabilize global supply chains.
