European Commission President Ursula von der Leyen criticized China’s export restrictions on critical raw materials at the G7 summit, urging cooperation with the United States and other allies to counter Beijing’s trade practices.
At the G7 summit in Kananaskis, Canada, European Commission President Ursula von der Leyen criticized China for restricting exports of raw materials essential to industries such as automotive, batteries, and wind turbines. Von der Leyen accused China of “weaponizing” its dominant position in the production and refining of critical raw materials, and of ignoring global trade rules to undercut competitors.
Since April, Beijing has imposed significant restrictions on the export of permanent magnets and their component minerals. Although these restrictions were a response to tariffs imposed by US President Donald Trump, they apply globally and have impacted Europe as well.
Von der Leyen said, “When we focus our attention on tariffs between partners, it diverts our energy from the real challenge — one that threatens us all,” addressing Trump, who was present at the roundtable. She added, “On this point, Donald is right — there is a serious problem,” and encouraged the United States to join its allies in addressing China’s trade imbalances rather than imposing tariffs on partners.
The EU has advocated for a collaborative approach with the US on China’s industrial policy, rather than a trade war among allies. Von der Leyen said China is “undercutting intellectual property protections, massive subsidies with the aim to dominate global manufacturing and supply chains. This is not market competition — it is distortion with intent.” She warned of a “new China shock,” citing concerns about cheap, state-subsidized Chinese products entering global markets and called on G7 countries to address China’s dominance in raw materials.
During the session, von der Leyen used a permanent magnet as a prop to highlight its importance to European industries such as car and wind turbine manufacturing.
A draft statement from the summit pledges a “G7 critical minerals action plan,” although it does not specifically name China, referring instead to “non-market policies and practices in the critical minerals sector.” The critical raw materials issue was expected to be one of the most straightforward points of agreement among G7 leaders and partner countries such as South Africa, Ukraine, Brazil, and India.
Von der Leyen also met separately with President Trump, with both sides agreeing to “accelerate their work” toward achieving a “good and fair” trade deal.
