Mark Leonard's World in 30 Minutes Made in China: How Europe can tackle economic coercion
Dec 26, 2025
Join Tobias Gehrke, a senior policy fellow specializing in economic security, and Andrew Small, director of ECFR's Asia programme, as they navigate Europe's challenges posed by China's tightening export controls. They discuss the significant risks for European industries and analyze how China gathers intelligence to enhance its coercive capabilities. The duo explores Europe’s competitive landscape against China, potential partnerships for alternative supply chains, and strategies to mitigate economic coercion amidst political divisions.
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Rare Earths Became A Strategic Chokehold
- China's 2025 export controls on rare earths created a strategic chokehold on European industry and defence supply chains.
- The October pause with the US eased headlines but left critical April controls, including defence-relevant rare earths, in place.
Companies Calling Ministries On Friday Night
- European firms faced immediate production panic, calling ministries as shutdowns loomed and getting only limited temporary licences.
- Some factories in affected automotive and other sectors already shut down or operated on a knife edge.
Licences Became An Intelligence-Gathering Tool
- China required firms to hand over granular production data and even personnel information to obtain licences.
- That intelligence gives Beijing precision to target future coercion and map critical supply vulnerabilities.