MILAN (Reuters) -Expected new Chinese curbs on rare earth metal exports could have a significant impact on the European auto industry, the head of Italian auto part maker lobby ANFIA said on Tuesday,

It aims to extract trade concessions from President Donald Trump and ensure the world remains dependent on China for critical raw materials.

China defended its export control measures on rare earths as "legitimate" on Sunday after President Donald Trump retaliated against the curbs by announcing steep new U. China is willing to strengthen dialogue and exchanges on export controls with all countries to better safeguard the security and stability of global industrial and supply chains,

China has further tightened export restrictions on rare earths ahead of talks between Presidents Donald Trump and Xi Jinping at the end of the month. The country produces over 90% of the world's processed rare earths and rare earth magnets and has used export restrictions to throttle shipments.

China first introduced rare-earth export restrictions in April in retaliation for tariffs imposed by the Trump administration, causing delays with vehicle production and forcing western companies to stockpile materials.

The pause in the trade war between the U.S. and China may be at risk of breaking open again after Beijing implemented restrictions on rare earth exports.

The European Union is seeking to coordinate with the United States and other G7 partners a response to tighter Chinese controls on the export of rare earth minerals, trade ministers and officials from the bloc said on Tuesday.