In 2023, efforts to improve diplomatic ties between the European Union and China faltered following China’s imposition of extensive restrictions on rare earth exports. This development disrupted attempts at a reset and led to a more guarded approach in subsequent interactions. As 2026 approaches, both sides appear to be adopting a “do no harm” stance, prioritizing stability over rapid progress.
The previous year’s challenges have influenced the EU’s strategy toward China, emphasizing careful management of economic and political relations. This cautious engagement reflects a desire to avoid further disruptions while navigating complex global dynamics and trade dependencies.
**Why this matters**
Rare earth elements are critical for various high-tech industries, making export controls a significant point of leverage in international trade. The EU’s response to China’s restrictions highlights the delicate balance in their relationship, which affects global supply chains and geopolitical stability. Understanding this evolving dynamic is essential for anticipating future developments in EU-China cooperation and competition.
Source: NewsData