French President Emmanuel Macron has urged European Union leaders to consider deploying the bloc’s most powerful trade instrument against China amid rising concerns over Beijing’s planned export restrictions on rare earth elements and other critical raw materials. Speaking at a summit in Brussels, Macron called the move by China “economic coercion” and pressed his counterparts to respond decisively.
China recently announced tighter controls on the export of rare earths, requiring licenses even for products containing minimal traces of these materials. The move poses a significant challenge for Europe, where these resources are essential to industries ranging from electric vehicles to defense manufacturing.
Macron emphasized that the EU must be ready to use all tools available, including the Anti-Coercion Instrument (ACI), which was designed to counter deliberate trade pressure from foreign governments. While the ACI has never been activated, it allows the EU to impose countermeasures such as tariffs, investment restrictions, or limits on public procurement access for non-EU companies.
Following discussions, German Chancellor Friedrich Merz confirmed that leaders reviewed the ACI but stopped short of a decision, leaving the European Commission to explore options for action. The Commission is expected to prepare a list of potential trade responses and alternative supply strategies should diplomatic talks with China fail to yield results.
EU Trade Commissioner Maros Sefcovic reiterated that Europe seeks to avoid escalation but warned that China’s export policy could severely strain relations unless resolved swiftly.