China's new export restrictions on rare earth elements, implemented in April as a potential response to US tariffs, have severely impacted European companies. The restrictions affect minerals crucial for smartphones and electric vehicles. The EU Chamber of Commerce in China reports that processing thousands of export applications is overwhelming Chinese authorities, leading to production halts for some European firms awaiting approval. While some approvals have been granted, the situation highlights the vulnerability of European industries reliant on Chinese rare earth supplies.

Prepared by Christopher Adams and reviewed by editorial team.