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The European Commission (EC) is setting up an emergency task force to deal with potential crises including a possible trade conflict with China, a move that Chinese analysts said reflects the bloc's growing tendency to see economic ties through the lens of risk rather than as an opportunity for cooperation.

China and the EU recently stepped up dialogue to manage their trade differences, including discussions over rare-earth export controls. Analysts warned that an excessive focus on security in economic ties could erode mutual trust and add uncertainty to global industrial chains.

The EU is preparing for a possible renewed trade dispute with China in October, when a temporary arrangement on rare-earth export controls is set to expire, the Financial Times (FT) reported on Wednesday, citing three officials.

Citing one senior official, the report said that the mechanism was aimed at being "more agile" and preparing to address problems identified by the bloc. The task force will explore alternative sources and may use EU funding to help maintain supplies of rare earths, another official told the FT.

It will have staff from departments responsible for industry, trade, financial services, development aid, the economy and the central unit directly under the control of EC President Ursula von der Leyen, the report said.

The task force is essentially designed as a supply chain contingency mechanism, and its establishment suggests that the EU is increasingly viewing economic ties with China through a risk-management lens, treating interdependence more as a risk to be managed than as a foundation for cooperation and development, said Wang Xiaoli, executive dean of the Institute for National Security Studies at the Guangdong University of Foreign Studies.

"When preventing potential disruptions becomes the starting point, the policy tools that follow are more likely to focus on defensive measures," Wang told the Global Times on Thursday.

The move reflects the EU's growing strategic concerns as the bloc grapples with sluggish economic growth, a loss of industrial competitiveness and rising geopolitical uncertainty, Jian Junbo, director of the Center for China-Europe Relations at Fudan University's Institute of International Studies, told the Global Times on Thursday.

Jian cautioned that its role could remain limited, as major trade policy decisions still require coordination among member states and must go through EU procedures that can be complex and time-consuming.

The move focuses on rare earths, key materials that are widely used in electric vehicles, electronics, defense equipment and other manufacturing sectors. China accounts for 66 percent of global mined supply and 88 percent of refined output.

Last November, China's Ministry of Commerce (MOFCOM) announced the suspension of some export control measures, mainly involving rare earths, with the arrangement set to remain in place until November 10, 2026. 

Chinese authorities have repeatedly stressed that rare-earth-related items have both civilian and military uses, and that export controls on such items are in line with international practices. The measures reflect China's commitment to safeguarding global peace and regional stability and supporting international non-proliferation efforts, according to the MOFCOM.

European companies' normal demand will be safeguarded as long as they comply with export control regulations and complete the necessary procedures, a spokesperson for the Chinese Embassy in the UK previously said. China has also set up a "fast-track" channel for European companies, reflecting its efforts to address the bloc's concerns.

While China and the EU have recently intensified engagement and shown signs of easing tensions, Brussels continues to strengthen measures that are seen as targeting China. The EC is expected to issue a "proposal on addressing supply chain dependencies" in September, according to media reports.

It is also working on a diversification law that would oblige companies to reduce exposure to a single supplier of certain key inputs.

"Reasonable diversification of key input sources is a legitimate risk-management practice. But if the EU shifts from building alternatives to restricting existing trade, it could undermine bilateral cooperation, create uncertainty, deter investment and ultimately hurt European businesses and consumers," Wang said.

A more pragmatic approach for the EU would be to improve its own competitiveness to address the root causes of its challenges, while managing trade imbalances through fair and open negotiations with other nations, Wang added.

Jian warned that if the EU's supply chain adjustment measures go beyond legitimate risk management and become unfair restrictions targeting Chinese companies, China will take necessary measures to safeguard its legitimate rights and interests.

According to the FT, EU trade spokesperson Olof Gill said that: "As part of its ongoing intensification of structured dialogue with China, the Commission is ramping up the frequency of regular co-ordination and internal work across services."

According to a joint press statement issued after the China-EU Trade and Investment Consultations in late June, both sides "took note of the positive results to date" of the China-EU Export Control Dialogue on rare-earth elements and other critical materials and minerals, and agreed to further strengthen dialogue in this area.

The two sides also agreed on the need for further facilitation efforts aimed at maintaining the stability of global industrial supply chains, according to the statement.