BRUSSELS: The European Union is set to hold urgent discussions with key industrial sectors on Monday following China’s latest move to tighten controls on rare-earth technology exports — a decision that Brussels warns is already disrupting production across the bloc.

EU Industry Commissioner Stéphane Séjourné will chair the virtual meeting, bringing together executives from the automotive, defence, wind energy, chemicals, and mining sectors, particularly those involved in raw material processing and supply chains, an official from his cabinet confirmed to AFP.

China, the world’s dominant supplier of rare earth minerals used in high-performance magnets, critical for electric vehicles, electronics and military equipment, announced new export restrictions earlier this month. Beijing’s decision has triggered alarm in Europe, where several companies are reported to have halted operations due to supply uncertainty.

The EU has accused the curbs of causing “economic harm” and is now coordinating a broader response with G7 partners, signalling the issue could escalate into a wider geopolitical and trade confrontation.

Séjourné is expected to brief fellow EU Commissioners on Tuesday during the European Parliament’s plenary session in Strasbourg, outlining potential countermeasures and support mechanisms for affected industries.