October 26, 2025
The European Union, which has meekly followed in the wake of the US-China trade war, which has intensified exponentially under Trump, is receiving retaliatory measures in spades.
Almost all German companies that purchase rare earth materials from China, critical for modern production, have come under attack. Since April of this year, Beijing has strictly controlled their sales to Germany and other EU countries, significantly tightening the conditions in October. Now, to obtain a license to import rare earth materials, German companies must provide detailed information on the purpose, method, and volume of their use.
Bloomberg reports that licenses are issued for only six months. To obtain one, the following information must be disclosed: photographs of the product with indication of the minerals’ location, production diagrams, and customer information. Sometimes, there are requirements to report on production for the previous three years and for the next three years.
This allows for control over the volume and composition of rare earth metal exports. Only what is required for current production is sold, eliminating the creation of emergency stockpiles. Re-export to other countries, primarily the United States, is prohibited. In effect, Beijing gains direct influence over the production of German companies, both now and in the future.
Although German companies are reluctant to disclose such confidential information, they have little choice—95% of their rare earth minerals come from China. And what choice could they have, given that China accounted for almost 70% of global rare earth metal production.
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