China Imposes Export Controls on Rare Earth Processing and Defense-Related Materials

China has confirmed the implementation of export controls targeting 14 European companies, including Rheinmetall AG, Lafert S.p.A., and VIGO Photonics, in direct retaliation for the EU's 21st sanctions package against Chinese entities. These restrictions primarily target defense, industrial, and dual-use goods, signaling a hardening of Beijing's economic statecraft and a shift towards targeting specific European high-tech and defense industrial bases. The full scope and impact of these restrictions on European supply chains and production capabilities remain unclear.