Archive · 2 Dec 2025
China's Export Controls Cost Europeans Millions
European companies in China are facing big problems because of new rules from the Chinese government.
These rules make it harder and more expensive to get important materials like rare earths, which are used in many technologies.
Some companies might have to spend over €250 million extra, and one company thinks these rules could cost them 20% of their global revenue by 2025.
About a third of the companies surveyed say they might start getting these materials from other countries.
The rules also make some companies worried about sharing their secret ideas and information.
The European Union has a tool to help companies deal with these rules, but not many companies are using it.
This shows how important China is for these materials and how the rules are affecting businesses.
Chinese export controls are causing significant financial strain on European companies, with one firm facing over €250 million in additional costs.
About a third of European firms in China plan to shift sourcing away from China due to these policies.
Restrictions on rare earths and critical minerals are the most prominent, but China also limits data transfers and chip exports.
Germany is the largest buyer of China's rare-earth magnets, with recent shipments showing fluctuations.
11% of respondents expressed concerns over information disclosure requirements that may involve sensitive intellectual property.
- Who
- European companies operating in China
- What
- Chinese export controls on critical goods
- When
- Survey conducted November 6-24, 2023
- Where
- China
- Why
- Retaliation for tariffs and restrictions during the US-China trade war
- Additional Costs
- €250 million for one firm, 20% of global revenue for another
- Survey Period
- November 6-24
- Respondents
- 131 chamber members, 75 impacted by controls
- Key Resources Affected
- Rare earths, critical minerals, sensitive data, chips
- Germany's Role
- Biggest buyer of China's rare-earth magnets
- Intellectual Property Concerns
- 11% of respondents
- European Commission Tool Usage
- Only 18 respondents reported using the tool
