There's a global game of tug-of-war going on right now. China is heaving one way, the United States the other, and the EU is somewhere in the middle—depends who you're asking and what about. In the last bout of furious tussling, China announced export controls on rare earth minerals, these being crucial to global trade and the manufacturing in many key sectors, including computer chips. This leaves the EU in a very difficult spot: it's so reliant on Chinese exports, yet some would have it spur up its own trade war in response.
The European Commission is reportedly drawing up plans of what might be included in measures to counter China's rare earths controls, according to sources speaking to Bloomberg. Though what these might entail is not yet clear—EU leaders are cautious to spark any further action with an important trading partner if it can be avoided.
