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As always. The EU must (and will) talk with China rather than Germany alone in a 'bilateral negitiation.'
And the EU should eventually activate its anti-coercion instrument (which should have done long time ago anyway, but better late than never. I guess I read a post even here on Lemmy about it if I'm not mistaken). This might then lead to a range of EU-wide measures, e.g., blocking of Chinese imports of major products (EVs, small parcels from Temu, Shein, others) and /or imposing high tariffs on Chinese imports that are important to Beijing, and similar measures. The EU has already an anti-coercion tool, it has just never used it. Maybe it's time now.
The long-term solution of alternative sources for rare earths is underway (agreements and negotiations with Australia, Canada, Ukraine, and others), but in the short-term the EU must stop buying Chinese stuff.