This episode of Long Story Short, hosted by Evi Kiorri, dives into why both the European Union and the United States are scrambling to hold talks with China at the same time. The focus is on Beijing’s new export controls on rare earths and permanent magnets, materials that Europe needs to build electric vehicles, defence equipment, renewable energy systems, and digital technologies. Because China processes nearly all of the world’s critical minerals, its tightened licensing rules have left European companies waiting weeks for approvals and have raised fears about supply-chain disruption. With EU leaders warning that the bloc is dangerously dependent on China, Brussels is trying to calm tensions while quietly preparing a new strategy to diversify suppliers and reduce reliance on Chinese materials. Meanwhile, Donald Trump is meeting Xi Jinping for similar reasons, showing that both Washington and Brussels are trying to secure access before restrictions deepen.
For Germany, it is at the center of this story because its entire industrial model relies on the exact materials now caught in China’s export controls. German automakers, machinery companies, and renewable-energy firms depend heavily on Chinese rare earths to keep factories running. Berlin’s ability to deliver on its green transition, defence modernization, and industrial revival depends on securing these inputs, making China a critical and uncomfortable partner. The podcast essentially highlights Germany’s biggest strategic vulnerability: the country cannot afford a rupture with Beijing, yet staying dependent puts its economy and security at risk.
Listen to the full podcast on Spotify.