# European markets

Markets Slump on Trade Shock as China Tightens Lithium Futures Limits — What it Means for EV Supply Chains and Policy Makers

European and US markets fell amid renewed trade tensions, sending investors into safe havens while Beijing moved to combine top‑level policy coordination with targeted market controls. The Guangzhou Futures Exchange widened lithium carbonate price limits to 11% and raised margins, a tactical response to extreme volatility in a key EV battery input. The episode highlights the interplay between geopolitical shocks, commodity market structure and China’s effort to sustain growth while tightening market oversight.