The expert article from 12 November 2025 in the Political Economy blog analyses how China is using its dominant role in the rare earths market as an economic policy lever and what risks this poses for European industrial consumers. The article shows why Europe remains vulnerable despite political initiatives: high import dependency, sluggish diversification and a structural delay in its own projects. It also emphasises the extent to which European industry is currently dependent on reliable trading partners in order to cushion production losses and price risks.
