Macron threatens to activate the European “Anti-Coercion Tool” against China
Follow-up
French President Emmanuel Macron urged European Union leaders to activate the European “Anti-Coercion Tool” against China if ongoing negotiations with Beijing regarding restrictions on the export of essential raw materials fail.
According to Bloomberg, this European warning comes in response to anticipated Chinese measures aimed at tightening control over the export of a range of sensitive materials unless a diplomatic solution is reached between the two parties.
During the European summit held on Thursday, Macron emphasized the need for EU leaders to “evaluate all available options to respond to China,” including activating this powerful trade tool that has never been used before, asserting that Chinese actions represent “economic coercion” and that the EU must have the means for an “effective response.”
For his part, German Chancellor Friedrich Merz stated that anti-coercion measures were among the topics discussed during the summit, but he noted that no decision has yet been made regarding their activation.
The “EU Anti-Coercion Tool,” which came into effect in January 2023, is one of the strongest trade mechanisms the bloc possesses, allowing it to impose economic or trade sanctions on any country that exerts unlawful pressure on one of its members. Activating it against China is expected to lead to a significant escalation in tensions between the two sides.
This escalation follows the announcement by the Chinese Ministry of Commerce on October 9 of the imposition of strict controls on the export of certain sensitive materials, set to take effect on November 8. These include materials related to heavy and medium rare earth elements, lithium batteries, and synthetic graphite anode, in addition to rare earth extraction and processing equipment and highly durable materials.
