Critical Raw Materials, Economic Statecraft and Europe's Dependence on China
As China tightens export controls on critical minerals, it is important to put Beijing's policies in perspective and analyse how Europe can respond.
The People’s Republic of China (PRC) holds a dominant position along wide swaths of critical mineral and technology value chains that are necessary for achieving Europe’s decarbonisation policy goals. Many fear that the PRC will pursue increasingly coercive measures to leverage its supply chain advantage in pursuit of broader geopolitical objectives. Examining three mineral groups in which Beijing has enhanced supply chain restrictions in 2023, namely rare earth elements, gallium and graphite, highlights that the PRC’s priority has long been the pursuit of economic and industrial policy goals rather than a broader diplomatic agenda, though this could change. Arguably, leveraging raw materials is ultimately a weak form of economic statecraft, eliciting effective diversification strategies that in turn weaken a supplier state’s sources of leverage. Europe’s response, while slow to emerge, has been a strategy to reinvest in its own mineral extraction, refining and recycling capacities, on the one hand, and diversify global supply chains by expanding its strategic partnerships, on the other.
Available in:
Themes and regions
Share
Related centers and programs
Discover our other research centers and programs
Center for Asian Studies
Asia is a nerve center for multiple global economic, political and security challenges. The Center for Asian Studies provides documented expertise and a platform for discussion on Asian issues to accompany decision makers and explain and contextualize developments in the region for the sake of a larger public dialogue.
The Center's research is organized along two major axes: relations between Asia's major powers and the rest of the world; and internal economic and social dynamics of Asian countries. The Center's research focuses primarily on China, Japan, India, Taiwan and the Indo-Pacific, but also covers Southeast Asia, the Korean peninsula and the Pacific Islands.
The Centre for Asian Studies maintains close institutional links with counterpart research institutes in Europe and Asia, and its researchers regularly carry out fieldwork in the region.
The Center organizes closed-door roundtables, expert-level seminars and a number of public events, including an Annual Conference, that welcome experts from Asia, Europe and the United States. The work of Center’s researchers, as well as that of their partners, is regularly published in the Center’s electronic journal Asie.Visions.
Find out more
Discover all our analyses
The China-led AIIB, a geopolitical tool?
The establishment of the Asian Infrastructure Investment Bank (AIIB) in 2016, on a Chinese initiative, constituted an attempt to bridge the gap in infrastructure financing in Asia. However, it was also perceived in the West as a potential vehicle for China’s geostrategic agendas, fueling the suspicion that the institution might compete rather than align with existing multilateral development banks (MDBs) and impose its own standards.
Jammu and Kashmir in the Aftermath of August 2019
The abrogation of Article 370, which granted special status to the state of Jammu and Kashmir (J&K), has been on the agenda of the Bharatiya Janata Party (BJP) for many decades.
France’s Contributions to Pacific Maritime Governance
France stands out as the only European country capable of making a substantial security contribution to the South Pacific, with a permanent presence of 2,800 military personnel extensively skilled in regional cooperation.
Unlocking India’s Energy Transition: Addressing Grid Flexibility Challenges and Solutions
India is rapidly scaling up its renewable energy (RE) capacity, adding 15–20 GW annually, but the ambitious goal of 500 GW of non-fossil capacity by 2030 is at risk unless the pace accelerates.