Study Warns Europe's Prosperity Depends on China's Raw Material Monopoly

A new study by the European Institute for Security Studies (EUISS) reveals that China has deliberately consolidated global control over critical raw materials, such as rare earths, for two decades to utilize them as political weapons. The report concludes that Europe’s current prosperity and security are heavily dependent on Beijing, making it impossible for the EU to break this quasi-monopoly independently within the next ten years due to long lead times for new mining projects. To counter this strategic vulnerability, the study urges the EU to collaborate with G7 nations and key partners like India, Brazil, and Vietnam. Recommended measures include coordinated investments in mining and refining, government subsidies, guaranteed minimum prices to protect against Chinese dumping, and the establishment of a common customs front. The author, Joris Teer, emphasizes that market forces alone are insufficient and advocates for a state-led approach similar to Japan’s JOGMEC model. The analysis highlights gallium as a warning example of how supply chains can be weaponized, urging immediate action to prevent similar bottlenecks in semiconductors and other key industrial sectors.