EU Prepares Trade Options to Counter China Rare Earth Curbs

The European Union is working on trade options to counter China’s planned export controls on critical raw materials should the bloc fail to reach a diplomatic solution with Beijing.

The European Commission is preparing a list of trade measures by the end of the month that can later be deployed against China to boost its negotiating leverage, according to people familiar with the matter. The commission is also developing a plan to protect critical supplies in the short-term and secure other sources.

China’s export restrictions would pose a massive threat to Europe’s industry and security, as the inputs are ...