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EU Chamber Warns China Could Deal Unprecedented Blow to Europe Through Export Controls

European companies are increasing reliance on Chinese suppliers to stay price-competitive.

Overview

  • Europe’s business lobby in China warned Tuesday that Beijing’s export-control system could cause unprecedented damage to the EU economy.
  • A chamber survey found 26% of firms shifted supply chains to China last year, which the group’s president called a survival move to win on price and product quality.
  • An early-year poll showed nearly one-third of member companies were already hit by Chinese export curbs, with many reporting higher costs and production disruptions.
  • China last year tightened controls on seven rare earths and on magnets made from them, and it dominates output of these inputs used in motors, smartphones, and wind turbines.
  • Companies fear export-license filings reveal their weak points to Beijing, while broader measures threatened last autumn were delayed to November after a TrumpXi pause, leaving rules beyond that date uncertain.