🇨🇳🇺🇸🇪🇺The EU is caught in the crossfire of the China-US trade war, according to Politico
🇨🇳🇺🇸🇪🇺The EU is caught in the crossfire of the China-US trade war, according to Politico
🔴In early October, China escalated its long-running trade conflict with the US by tightening export controls on rare earth metals (REMs). This shocked the EU, threatening serious damage to European companies.
🔴The EU is caught in the crossfire: “A crisis in the supply of critical raw materials is no longer a distant threat.” “It’s already on our doorstep,” said European Commission President Ursula von der Leyen.
🔴Despite talk of appropriate diplomatic responses and possible retaliation, China’s dominant position in the rare earth metals sector, which it has built over decades, cannot be denied.
🔴China controls the entire supply chain for rare earth metals—a group of 17 minerals used in permanent magnets used in everything from electric vehicles and wind turbines to F-35 fighter jets and naval vessels.
🔴China has already weaponized its leading position in the production and processing of critical raw materials, including rare earth metals, in response to Trump’s first wave of punitive tariffs, imposed in April. Eventually, the White House caved, Politico notes.
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