Denmark Calls for Robust EU Unity Against China's New Rare Earth Export Controls

Denmark Advocates for 'Tough Response'

Danish Foreign Minister Lars Løkke Rasmussen called for a 'tough response' from the European Union to China's new export controls on rare earths. Speaking to reporters before an EU trade ministers' meeting in Horsens, Denmark, on Tuesday, October 14, 2025, Rasmussen emphasized the need for the bloc to 'stick together' with Washington and 'flex the muscles' against Beijing's actions. Denmark currently holds the rotating EU presidency.

While advocating for a firm stance, Rasmussen rejected the idea of imposing retaliatory tariffs on Chinese goods, suggesting instead that the EU should maintain 'frank and open discussions' with Beijing while preserving its leverage. He also proposed that the EU should consider adopting a more muscular trade policy, similar to that of the United States and China, by setting preconditions for Chinese investments in Europe, including technology transfer.

China's Expanded Export Control Regime

China's Ministry of Commerce (MOFCOM) announced a new round of stringent export control measures on October 9, 2025. These controls target key products and technologies, including rare earths, battery materials, and superhard materials. The new regulations represent a significant escalation, extending restrictions from products to technologies and, for the first time, formally applying extraterritorial jurisdiction.

The expanded controls now encompass five additional rare-earth metals, bringing the total to nearly all of the recognized 17 rare-earth elements. Under the new rules, foreign companies must obtain Beijing's approval to export goods containing as little as 0.1% or more by value of certain Chinese-sourced rare earths, or products manufactured using China's rare earth-related technologies. Exports for overseas military use are 'in principle' banned, and case-by-case approval is required for rare earths used in advanced technologies such as semiconductor equipment and artificial intelligence with potential military applications. While some controls took immediate effect, others are scheduled for November 8, 2025, with extraterritorial controls commencing on December 1, 2025.

EU's Concerns and Strategic Response

EU Trade Commissioner Maroš Šefčovič echoed Denmark's concerns, condemning China's measures as 'unjustified' and a 'critical concern' for Europe. He highlighted the necessity for the EU to accelerate efforts to reduce its strategic dependence on China, especially given that the EU sources 98% of its rare earth supply from China. Šefčovič noted that China's restrictions have already compelled some EU companies to halt production, causing 'real economic harm'.

The EU is coordinating with G7 partners on a unified response, with G7 finance ministers slated to discuss the issue in Washington. Šefčovič also plans to engage directly with China's commerce minister, Wang Wentao. The bloc is considering an 'Industrial Accelerator Act' as part of its strategy to reduce dependency and potentially mandate technology transfer for Chinese investments, aiming to ensure the future of clean technology remains in Europe.

Geopolitical Implications

These new export controls are widely perceived as an escalation in the ongoing trade dispute between China and the United States, serving as a geopolitical tool to assert China's dominance in critical mineral supply chains. The measures are also intended to prevent Chinese-origin rare earths or related technologies from contributing to foreign defense supply chains. The EU, through its Critical Raw Materials Act (2023), has already set ambitious targets to diversify its sourcing and processing of critical minerals to mitigate such vulnerabilities.