Members of the European Parliament have recently supported a motion indicating that China's export restrictions on rare earths lack justifiable reasons and have coercive intentions. The motion highlights China's 'quasi-monopoly position' in the rare earth sector, which gives it significant influence. On Thursday (July 10), the motion was adopted with 523 votes in favor, 75 against, and 14 abstentions.

Although the motion is not legally binding, its influence is considerable, as the European Parliament is the only directly elected body in the EU. Furthermore, the parliament members called for the EU to provide specific budgets to achieve local extraction and processing goals for critical mineral resources by 2030, as well as to assess the minimum requirements for strategic reserves of rare earths.

In April this year, China introduced regulations requiring rare earth exporters to obtain export licenses issued by the Ministry of Commerce. The motion passed by the European Parliament calls for the removal of these export restrictions. It also noted that Beijing has established a 'green channel' for European companies to simplify related procedures. China accounts for about 60% of global rare earth extraction and produces 90% of the world's rare earth magnets, which are widely used in various fields such as automobiles and home appliances.

Chinese Foreign Minister Wang Yi attempted to ease European concerns last week in Berlin, stating that restrictions on exports that may be used for military purposes are standard international practice, but if the European side submits a request, their needs can still be met. Rare earths are expected to be a key issue at the upcoming EU-China summit later this month.