Highlights

• Indian media framed EU Vice President Séjourné's remarks as calling China's export licensing a 'racket,' but this characterization doesn't reflect official EU policy doctrine or coordinated messaging.
• China introduced new rare earth export controls in October requiring technical disclosure, creating supply chain concerns for Europe which depends on China for over 90% of magnet materials.
• Europe is preparing structural decoupling through joint procurement, domestic processing expansion, recycling mandates, and partnerships with Australia, Canada, Namibia, and India.

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The Times of India (opens in a new tab) splashed a dramatic headline this week—“China running a racket”—claiming Europe has launched a blistering attack on Beijing over rare earth export controls. The source: remarks by European Commission Vice President Stéphane Séjourné (opens in a new tab) to the European Parliament.

But does this Indian framing reflect the actual tone emerging from Brussels? Or is this another example of global media turning technocratic policy language into geopolitical theater?

Between Diplomacy and Drama: Parsing the EU’s Real Message

Séjourné did express concern that China’s new export-licensing regime—particularly the requirement to disclose sensitive technical information—was burdensome, opaque, and possibly abusive. EU officials did indeed describe the licensing process as issuing permits “in dribs and drabs,” delaying shipments of magnet-grade oxides and alloys.

But the word “racket” was a characterization—not formal EU doctrine.

European Commission language tends to be measured, lawyerly, and coded, especially in trade contexts. Brussels rarely escalates to such charged terminology unless tied to a formal WTO complaint.

Stéphane Séjourné, Calling Chinese Industrial Policy a Racket

So while Séjourné did warn that the licensing demands “look like a racket,” the rhetorical leap made by the _Times of India_—framing this as a full-scale EU attack—reflects more newsroom dramatization than a coordinated European messaging shift.

Reality On the Ground

Accurate:

• China did introduce new rare earth export controls in October, later pausing enforcement for one year.
• EU supply chains rely heavily on Chinese magnet materials—over 90% dependency in some segments.
• The Commission will unveil its new critical raw materials package on December 3, including joint procurement, domestic processing expansion, and a European Centre for Critical Raw Materials.

Speculative or Over-interpreted:

• Europe believes China is “running a racket” as an official policy stance.
• Europe is being “directly targeted” rather than broadly impacted by China’s evolving industrial strategy.
• That Beijing’s licensing requirements always compel disclosure of trade secrets; this varies case-by-case and remains contested.

Notable for rare earth investors: Brussels is quietly but unmistakably preparing for structural decoupling from Chinese midstream processing, even if headlines oversell the emotional temperature.

Why This Matters for the Global Rare Earth Chain

The real takeaway is not the rhetoric—it’s the architecture of Europe’s response. Joint purchasing, new recycling mandates, Japan-style stockpiling, and expanded partnerships (likely with Australia, Canada, Namibia, and India) point to a tightening global race for non-Chinese magnet supply. Whether or not Europe is fuming, it is unmistakably acting. Rare Earth Exchanges' rare earth process rankings list leading refiners in Europe. These rankings will be available with the new website launch.

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