Europe is observing the trade tensions between the US and China over rare earth minerals from the sidelines, particularly after China expanded export controls to include products made in third countries using Chinese-origin materials.

In a conference centre in The Hague last October, a roomful of Asia-watching European officials and experts were gathered for a symposium on relations with China when news broke that Beijing was expanding export controls on rare earths and other minerals. Crucially, there was now an extraterritorial element: China could deny exports not only to direct buyers, but also restrict products made in third countries if they contained Chinese-origin rare earth content or controlled inputs. In practice,....