The European Union(EU)executive will unveil on Wednesday a series of measures to reduce what it calls its"over-reliance"on China for critical raw materials as Europe seeks to keep pace with fierce global competition from the US and Asia,according to Reuters.Analysts say the move reflects the EU's rising strategic anxiety amid global supply chain shifts,while stressing that in the rare-earth sector,China and Europe are not engaged in a zero-sum rivalry but instead have broad room for cooperation.
The Economic Security Doctrine to be unveiled on Wednesday aims to make Europe's industry more self-sufficient and includes a plan for critical raw materials,called ResourceEU-mimicking the RePowerEU scheme of weaning itself off Russian oil and gas,Reuters reported on Friday local time.
EU Industry Commissioner Stephane Séjournéclaimed this week that Europe is not merely a collateral victim of US-China trade tensions but is being"directly targeted,"per the report.It also quoted European Central Bank President Christine Lagarde as saying last week that"Europe has become more vulnerable"due to its dependency on third countries for its security and the supply of critical raw materials,while highlighting other challenges ranging from rising US tariffs to stiffening competition from China.
However,the report also underscored that curbing the EU's dependence on China will be far more difficult than reducing its reliance on Russian natural gas.The materials are not easily substitutable like gas,and China remains by far the lowest-cost supplier,dominating both extraction and processing expertise.
Cui Hongjian,a professor at the Academy of Regional and Global Governance at Beijing Foreign Studies University,said that the EU's politicization of the critical minerals issue reflects the bloc's deepening strategic anxiety during ongoing global supply chain restructuring.He warned that the bloc's flawed narrative and related measures against China risk exacerbating structural tensions,undermining mutual trust and economic coopeartion.
According to Cui,the EU's effort to cut or even eliminate this reliance is neither feasible nor necessary in the near term."The current supply landscape is the result of long-running market competition,with China holding unmatched advantages in scale,efficiency and industrial depth across many key materials-advantages Europe is unlikely to reproduce anytime soon,"Cui told the Global Times on Monday.
Whether the bloc turns to domestic mining or attempts to reconfigure global supply routes in other countries and regions,it will confront high costs,stringent environmental requirements and a substantial gap in industrial capability,Cui noted.
Industry and EU officials said the EU will face the problem of how to pay for creating its own,critical raw materials and rare earths industry,often from scratch,from mines to extraction,processing and stockpiling,according to Reuters.
Although one EU official referenced funding to support the most urgent 25 of the 60 strategic projects identified by the European Commission in the rare-earths and critical raw materials sector,the report noted that securing long-term financing remains a major hurdle.
Cui emphasized that the EU should recognize the true source of current supply chain disruptions is the US'long-standing unilateral sanctions and economic coercion against China."If the EU truly wants to resolve the issue,it should criticize and press Washington to rein in its unilateral moves while actively seeking to enhance communication and cooperation with China,"Cui said.
China and Europe do not face a zero-sum conflict in key mineral sectors but share significant opportunities for cooperation,as ensuring a stable and efficient supply chain benefits both sides,Cui said,noting that enhanced China-EU export control consultations are effective measures to address industry concerns.
China and the EU held upgraded"export control dialogue consultations in Brussels from October 31 to November 1.Both sides agreed to maintain communication and promote the stable and smooth functioning of China-EU industrial and supply chains,according to China's Ministry of Commerce.
"China-EU economic and trade relations are shaped by their mutual complementarity and are win-win in nature.We hope the EU will honor its commitment to supporting free trade and opposing trade protectionism,provide an open,transparent and non-discriminatory environment for businesses from all countries,take concrete actions to uphold market economy principles and WTO rules,and properly address trade differences through dialogue and consultation,"Foreign Ministry spokesperson Guo Jiakun said on October 22,in response to questions about China-EU rare-earth discussions.
