European Union backs critical minerals projects to prevent trade crisis with China

The European Union announced backing for 46 strategic projects involving critical raw materials such as lithium and rare earths plants, according to the Guardian. Industry commissioner Stéphane Séjourné stated on October 9, 2026, that the bloc is taking active steps to prevent an imminent trade crisis with China. [1]

Stéphane Séjourné warned that the European Union could face a major trade crisis and escalating trade tensions in the coming months, the Guardian reported. The supported projects aim to significantly accelerate the European Union's internal supply of critical raw materials by 2030. [1]

China is governed by the Chinese Communist Party under Xi Jinping. Following market reforms started in 1978, China achieved rapid economic expansion through exports and industrial growth, though its annual gross domestic product growth has recently moderated to between four and five percent. [2]

The European Union initiative seeks to secure domestic access to key industrial inputs, according to the Guardian. Developing internal processing capacity for critical minerals is intended to shield European industries from future trade disputes and supply disruptions. [1]