Critical Raw Materials, Critical Situation: Dependencies of the Defense Industry

The breakout session will examine critical raw materials and Europe's geopolitical and economic dependencies on China, with a particular focus on the defense industry and its significance for European security and defense.

Since 2023, China has progressively tightened export controls on a growing list of critical raw materials and dual-use goods with direct consequences for European defense companies such as Rheinmetall. At the same time, the EU is negotiating its trade relationship with China, aiming for results by October 2026, and Trade Commissioner Maroš Šefčovič is planning a trip to China this fall as part of that effort. Few issues sit as squarely at the intersection of economic security and defense policy as raw material dependency does right now.

The session is designed as an in-depth expert discussion with the aim to build, together with participants, a shared and empirically grounded picture of the defense industry's raw material dependency, as well as an initial assessment of the economic-policy options available — from tariffs and stockpiling to joint procurement.

The European China Conference has established itself as a leading forum for policymakers, researchers, academics, civil society representatives, and industry leaders to discuss the most pressing challenges related to China and explore appropriate responses.

The program will cover the topics most relevant to understanding key developments and dynamics, including Europe’s geoeconomic challenges and strategy, economic and technological competition, critical raw materials, green tech, cybersecurity, China's new foreign policy, Beijing's relations to Russia and the Global South, and the road to the CCP's 21. Party Congress.

MERICS is delighted to host the European China Conference in cooperation with prominent partners including the European Council on Foreign Relations (ECFR), the European China Knowledge Network (E-CKN), the German-Chinese Dialogue Forum (DCDF), GIGA Hamburg, the Kiel Institute for the World Economy and the Peace Research Institute Frankfurt (PRIF).