China’s Measures for Export Control
China’s recent measures to control the export of strategic raw materials, particularly rare earths and metals, have significant impacts on global commodity markets. These measures could influence the prices and availability of critical production resources, which have direct consequences for companies and investors in the Eurozone.
Current Measures
- Export Controls for Rare Earths: Since April 4, 2025, several rare earth elements such as Samarium, Gadolinium, Terbium, Dysprosium, Lutetium, Scandium, Yttrium, as well as their alloys and chemical compounds, are subject to Chinese export control. Exporters need a license from the Chinese Ministry of Commerce (MOFCOM) to export these goods.
- Other Strategic Metals: In addition to rare earths, China has also tightened control over other strategic metals such as Gallium, Germanium, Tellurium, Antimony, Indium, and Bismuth. Export licenses and approval requirements are strategically used to control supply chains.
Market Impacts
- Price and Availability Risks: The export controls may lead to shortages in the supply of these raw materials, which could drive prices up and restrict availability for companies.
- Affected Industries: Particularly the production of electronics, electric vehicles, and defense systems could be impaired as they are heavily reliant on rare earths.
- Impact on DAX Companies: German companies operating in these sectors could be significantly affected. Some factories have already reduced production as they are not adequately prepared for the Chinese measures.
Global Reactions and Strategies
- Reactions to US Tariffs: In response to US tariffs, China has also taken countermeasures, including additional tariffs on US goods. This shows that Beijing is willing to leverage its market power as leverage.
- Preparation for a Resource War: There are signs that China is preparing for a possible resource war by consistently deploying its strategic tools. This could further pressure the global economy.
Overall, China’s export controls demonstrate that the country is using its market power to pursue geopolitical goals. The impacts on global markets are significant, and companies as well as investors must prepare for potential shortages and price increases.