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American Focus > Blog > Economy > China keeps tight grip on rare earths, costing at least one company ‘millions of euros’
Economy

China keeps tight grip on rare earths, costing at least one company ‘millions of euros’

Last updated: September 20, 2025 12:45 pm
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China keeps tight grip on rare earths, costing at least one company ‘millions of euros’
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Mineral explorers are eagerly eyeing the opportunity to tap into Brazil’s nearly $1 billion in funding to meet the increasing demand for rare earths, the valuable minerals essential for various products ranging from cars to semiconductors. With China currently dominating the rare earth market, international businesses are facing challenges in accessing these critical resources, as Beijing continues to restrict foreign companies from obtaining rare earths.

The European Chamber of Commerce in China recently highlighted the struggles faced by foreign companies, with at least one member reportedly losing millions of euros due to the lack of access to rare earths. Despite some approvals being granted by China’s Ministry of Commerce, the process remains inconsistent, leaving many businesses in limbo. The uncertainty surrounding access to rare earths has raised concerns among industry players, with fears of production halts looming on the horizon.

China’s control over rare earth production has been a bargaining chip in its trade negotiations with the U.S. and other partners. The country has tightened restrictions on rare earth exports, demanding assurances that the minerals will not be used for military purposes. This has led to a complex and challenging environment for businesses reliant on rare earths for their operations.

European and U.S. businesses have voiced their concerns over a potential shortage of rare earths in the coming months, adding to the existing disruptions caused by trade tensions and supply chain disruptions. The situation has further exacerbated the decline in foreign business confidence in China, with many companies redirecting their investments to other regions.

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As businesses grapple with the challenges of accessing rare earths, the European Chamber of Commerce in China is set to engage with EU policymakers to address the ongoing issues. The chamber has called for a more transparent and consistent process for obtaining rare earths, emphasizing the need for a level playing field for all businesses operating in China.

With China set to unveil its development goals for the next five years, European businesses will be closely monitoring the outcome of the upcoming meeting of top leaders in October. The decisions made during this meeting will have significant implications for businesses reliant on rare earths and other critical resources.

In conclusion, the challenges faced by international businesses in accessing rare earths underscore the importance of a coordinated and collaborative approach to address the issues at hand. By working together with policymakers and industry stakeholders, businesses can navigate the complex landscape of rare earth supply and ensure a sustainable and reliable source of these essential minerals for the future. The world is constantly evolving, and with it, our understanding and perception of various issues also change. One such issue that has been at the forefront of global discussions is climate change. The effects of climate change are becoming more pronounced with each passing day, and it is essential for us to take steps to mitigate its impact.

Climate change is a phenomenon that is primarily caused by human activities such as burning fossil fuels, deforestation, and industrial processes. These activities release greenhouse gases into the atmosphere, which trap heat and lead to a gradual increase in global temperatures. This rise in temperatures has far-reaching effects on the environment, including melting ice caps, rising sea levels, and extreme weather events.

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One of the most significant consequences of climate change is the loss of biodiversity. As temperatures rise, many species are struggling to adapt to their changing habitats, leading to a decline in population numbers and, in some cases, extinction. This loss of biodiversity has a cascading effect on the ecosystem, disrupting the delicate balance that exists between different species.

In addition to biodiversity loss, climate change also has severe implications for human health. Extreme weather events such as hurricanes, droughts, and heatwaves are becoming more frequent and intense, leading to an increase in the number of climate-related health issues. These include heatstroke, respiratory problems, and the spread of infectious diseases.

Furthermore, climate change is also a significant driver of food insecurity. Changes in temperature and rainfall patterns can have a detrimental impact on crop yields, leading to food shortages in many parts of the world. This, in turn, can exacerbate poverty and inequality, as vulnerable populations are disproportionately affected by the consequences of climate change.

Despite the grim outlook, there is still hope for mitigating the impact of climate change. Governments, businesses, and individuals all have a role to play in reducing greenhouse gas emissions and transitioning to a more sustainable way of living. This can be achieved through investing in renewable energy sources, adopting energy-efficient practices, and promoting sustainable agriculture.

It is essential for us to act now to combat climate change and preserve the planet for future generations. By taking collective action and making conscious choices in our daily lives, we can make a significant difference in mitigating the impact of climate change and creating a more sustainable future for all.

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