How the EU and US Plan to Squeeze China
Economy
The European Union and the United States have taken a major step toward economic independence from Beijing. In Washington, a strategic Memorandum of Understanding was signed, laying the foundation for the coordination of critical mineral supplies—resources upon which the future of the defense industry, electric vehicle production, and semiconductors directly depends.
The document was signed by U.S. Secretary of State Marco Rubio and EU Trade Commissioner Maroš Šefčovič. The primary goal of the pact is to diversify supply chains and break China's global monopoly. Rubio emphasized that the excessive concentration of resources in the hands of a single player represents an "unacceptable risk" to the national security and economic success of Western nations. The agreement encompasses not only joint investments in mining and research but also the synchronization of government subsidies, the creation of common standards, and the formation of strategic raw material reserves.
This move is particularly significant given the Donald Trump administration's traditionally strained relations with Brussels. The fact that Washington has recognized the EU as a strategic partner signals the gravity of concerns regarding export restrictions from China. Beijing has repeatedly used mineral supplies as a tool of political leverage. Now, the West intends to create a "preferential trade zone" that will unite not only the EU and the US but also other allies such as Japan, Australia, and Mexico.
In tandem with the minerals pact, the parties are discussing a resolution to the long-standing "steel dispute." Maroš Šefčovič reported positive momentum in negotiations to ease U.S. tariffs on steel and aluminum, which have severely impacted European manufacturers. Brussels has proposed that Washington join a so-called "steel ring"—a unified protective mechanism against excess capacity and subsidized products from third countries. These joint efforts to protect the steel market and secure access to critical minerals are designed to make the transatlantic economy more resilient to global shocks and political blackmail.
This move is particularly significant given the Donald Trump administration's traditionally strained relations with Brussels. The fact that Washington has recognized the EU as a strategic partner signals the gravity of concerns regarding export restrictions from China. Beijing has repeatedly used mineral supplies as a tool of political leverage. Now, the West intends to create a "preferential trade zone" that will unite not only the EU and the US but also other allies such as Japan, Australia, and Mexico.
In tandem with the minerals pact, the parties are discussing a resolution to the long-standing "steel dispute." Maroš Šefčovič reported positive momentum in negotiations to ease U.S. tariffs on steel and aluminum, which have severely impacted European manufacturers. Brussels has proposed that Washington join a so-called "steel ring"—a unified protective mechanism against excess capacity and subsidized products from third countries. These joint efforts to protect the steel market and secure access to critical minerals are designed to make the transatlantic economy more resilient to global shocks and political blackmail.
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