The European Union has revived plans to reduce reliance on China, unveiling two proposals to strengthen its economic arsenal and address access to rare earth, reports Hong Kong's South China Morning Post.
The European Union has revived plans to reduce reliance on China, unveiling two proposals to strengthen its economic arsenal and address access to rare earth, reports Hong Kong's South China Morning Post.
The first blueprint, an economic security communication, aims to provide the EU with a framework to manage trade, competition and economic tools that could counter coercion or weaponisation of dependencies.
The second proposal, named ReSource EU, seeks to decouple from China's dominance in minerals. Modelled on the bloc's move away from Russian energy, it would restrict exports of scrap rare earth permanent magnets by mid-2026, a step expected to meet 20 per cent of EU demand.
Hong Kong's China Economic Review said the EU also plans to create a commission to coordinate responses to economic threats. Alongside the ban on scrap rare earth exports, these measures add to earlier steps announced this year.
The announcement came a day after China approved its first batch of general rare earth export permits. Analysts noted that decoupling will be difficult, as China controls most of the world's rare earth mines and refining capacity. Significant investment in alternatives will be required if economies are to offset China's monopoly.
