European Union officials called for strong measures against China after Beijing imposed fresh export restrictions on rare minerals used in computer chips and other advanced technologies.

“We should have a tough response,” said Danish Foreign Minister Lars Løkke Rasmussen, whose country chairs the EU’s rotating presidency.

“We are the biggest trading bloc in the world; we have a lot of muscles,” he added, speaking to reporters on Tuesday (Oct 14) ahead of a trade ministers’ meeting in Horsens, Denmark. “We need to flex those muscles.”

The gathering comes after China announced new rules last week requiring foreign firms to seek approval to ship products containing even trace amounts of Chinese rare earth materials. The new regulations explicitly target materials used to make certain computer chips and to power AI research with military applications.

The move has left EU officials fretting about major disruptions in crucial supply chains.

“I’m very concerned. And more than concerned,” Michal Baranowski, Poland’s deputy economic development and technology minister, told Bloomberg News. “This is, in some ways, the worst-case scenario of weaponising our rare earths dependency.”

China’s Foreign Ministry did not immediately respond to a request for comment.

EU trade ministers will address the matter Tuesday as they discuss how tariffs, export controls and other trade tools are being exploited.

Already, Europe is seeing the potential ramifications of China’s actions. Dutch ASML Holding NV, the world’s only manufacturer of the most advanced semiconductors, is bracing for disruptions, Bloomberg News previously reported.

The fresh restrictions led US President Donald Trump to announce on Friday that he would impose an additional 100% tariff on China and place export controls on “any and all critical software”.

Rasmussen said he didn’t see the EU imposing its own retaliatory tariffs on China. But he and other officials stressed that the EU should explore a joint response with the US.

“This is an area where we have common interest with our friends in the US,” Rasmussen said. “That’s also why we should avoid a trade war with the US. If we stick together, we could much better pressure China to act in a fair way.”

EU trade chief Maros Sefcovic told reporters that the Group of Seven nations should try to hold a video call soon to coordinate their actions on the matter. He also said he would ask for a videoconference with his Chinese counterparts next week.

The EU has been gradually toughening its stance on China in recent months. The European Commission, the EU’s executive arm, proposed a 50% tariff last week on foreign steel above a set quota to restrict imports and tackle global overcapacity driven by Beijing.

Meanwhile, the Netherlands invoked for the first time a 70-year-old law to seize control of Chinese-owned chipmaker Nexperia, aiming to ensure Europe retains unfettered access to its chips.

Baranowski said officials must “think about what Europe can do to both extract ourselves from the vulnerability, though we know that this isn’t easy”.

He added, “Until they pull back, we should take it as seriously as the analysis suggests.”

Source: Bloomberg

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