European Industry Under Siege: China Deploys Rare Earths As Economic Weapon

The US-China trade war has escalated, with China imposing export restrictions on rare earth elements, crucial for industries like electric motors and defense systems. China controls nearly 85% of global rare earth refining, making it a critical supplier. The restrictions have already forced some German manufacturers to scale back operations, and others face shutdowns. China's move is a calculated pressure tactic in its standoff with the US and EU. Beijing is feeling the squeeze from the Trump administration's hardline trade policy and is trying to shield its internal stability. The economic foundation of Communist Party rule is crumbling, with China's domestic economy faltering and its real estate and industrial sectors flashing recession signals. China's message is clear: Europe must absorb the blow of lost access to the US market, and Beijing has no intention of abandoning its mercantilist model. The threat is explicit: comply or get cut off, and Europe's vulnerability lies in its dependence on critical raw materials. The EU and China are ideological kin in economic matters, embracing protectionism and top-down trade policies. The aircraft deal between China and Airbus is a geopolitical statement, and Europe must decide whether to chase short-term industrial gains or guard against long-term strategic dependency.