Europe’s defence industry would gradually reduce its reliance on China during the continent’s ongoing rearmament drive, rather than decouple completely, analysts said.
On Wednesday, during the Group of Seven summit in Evian-les-Bains, France, the leaders of France, Germany, the UK, Italy, the US, Canada and Japan signed a declaration on securing supply chains for critical minerals.
Without naming China, the leaders agreed to “significantly reduce” their dependency on a “single supplier outside the G7” for rare earths and permanent magnets to below 60 per cent by 2030, with the ultimate goal of reaching 50 per cent “as soon as possible”.
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“We will work together with partners to reduce critical dependencies and ensure that attempts or threats to weaponise economic dependencies fail,” the declaration said.
China is the world’s largest producer of rare earths and other critical minerals, such as gallium, accounting for more than 90 per cent of global supply.
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These materials are used to make advanced military systems including radars, missile guidance components and propulsion systems.