“In recent weeks and months, China has dramatically tightened export controls on rare earths and battery materials,” he told the Berlin Global Dialogue conference on Saturday, adding that this posed “significant risks.”
In the most revealing comments since China announced plans to restrict rare earth exports earlier this month, von der Leyen said in the short term Brussels was focused on finding a solution with the Chinese side, according to Bloomberg.
“However, we are ready to use all tools in our toolbox to respond if necessary, and we will respond in coordination with our G7 partners,” she added.
Her comments came days after French President Emmanuel Macron told European Union leaders to consider using so-called anti-coercion measures against China – the EU’s most powerful trade tool – if a solution to Beijing’s planned export restrictions on critical raw materials is not found.
This tool, known as ACI, has never been used. This is primarily designed to respond to deliberate coercive actions from third countries that use trade measures as a deterrent and, if necessary, as a means of putting pressure on the policy choices of the EU or its Member States.
MNA