The European Union has filed a formal complaint with the World Trade Organization (WTO) against China over its export restrictions on critical raw materials, including rare earths. These materials are essential for the EU’s technological and green transition goals, playing a vital role in industries such as renewable energy, electronics, and electric vehicles.
The complaint, filed in January 2025, addresses China’s export controls on gallium and germanium, two critical raw materials used in semiconductors, solar panels, and defense technologies. China, which produces a significant majority of the world’s supply of these materials, imposed restrictions in July 2024, citing national security concerns. The EU alleges that these restrictions violate WTO rules by unfairly limiting global market access.
European Commission Vice-President Valdis Dombrovskis highlighted the EU’s concerns, stating that the restrictions are part of China’s broader strategy to dominate global supply chains for critical materials. He emphasized that such measures threaten the EU’s economic security and its ability to achieve strategic autonomy in key sectors.
The EU’s action follows similar moves by the United States and Japan, which have also voiced concerns over China’s export policies. The coordinated pressure reflects a growing global effort to counter China’s influence in the supply chain for critical materials, particularly as countries seek to diversify sources and reduce dependency on a single supplier.
China, for its part, has defended its export controls, arguing that they are consistent with WTO regulations and necessary for protecting national interests. Beijing has also pointed to environmental concerns associated with mining and processing these materials as justification for its policies.
The WTO complaint is the first step in a dispute resolution process that could take years to resolve. If the EU and China fail to reach a settlement during consultations, the case may proceed to a panel for adjudication. A ruling against China could lead to authorized retaliatory measures by the EU, potentially escalating trade tensions.
This development underscores the critical role of rare earths and other strategic materials in global geopolitics, as nations vie for control over resources essential for the technologies of the future. The EU’s challenge reflects its commitment to securing stable and fair access to these resources to support its economic and environmental goals.
