Beijing's tightening controls on rare earth exports are prompting a fundamental reassessment among European companies operating in China, according to the EU Chamber of Commerce in China. In a report published Tuesday, the lobby group warned that licensing procedures remain "slow, unpredictable, and lacking in transparency," leaving firms exposed to politically motivated supply disruptions at short notice. Chamber president Jens Eskelund said many European companies were "caught flat-footed" by last year's curbs and are now actively developing contingency plans, with the shift expected to produce measurable economic consequences over time.