The EU is establishing an emergency task force to anticipate and respond to crises such as a potential trade clash with China over rare earths, as a one‑year truce on export controls nears its October expiry.

China supplies 66 per cent of mined and 88 per cent of refined rare earths, making the bloc vulnerable; the task force, drawing staff from industry, trade, finance and the office of Ursula von der Leyen, will seek alternative sources and may deploy EU funding to keep supplies flowing.

Trade commissioner Maroš Šefčovič warned Beijing that failure to reduce the €1 bn‑a‑day trade deficit could trigger EU action, while a recent semiconductor squeeze linked to Nexperia forced a temporary easing of sanctions. Officials stress the group will also monitor other risks, including US tariffs, Iran‑related energy disruptions and Russian hybrid attacks.

The Commission plans a September proposal to cut supply‑chain dependencies, including an aluminium‑scrap export tax and higher rare‑earth magnet recycling, and a diversification law to limit reliance on single suppliers.