Where is the trade dispute between Europe and China in the metals sector heading?

Where is the trade confrontation between Europe and China in the minerals sector heading?

Lebanon Today

The President of the European Commission, Ursula von der Leyen, announced that the European Union is working on a new strategy aimed at reducing its heavy dependence on the People’s Republic of China for critical raw materials, especially those used in the defense industries and the electric car industry, in addition to the clean energy sector.

Von der Leyen explained that this strategy, which will be called “Resource EU,” will focus primarily on expanding partnerships with a number of countries such as: Australia, Canada, Chile, Greenland, Kazakhstan, Uzbekistan, and Ukraine. This is in addition to strengthening raw material recycling operations within the European continent, in order to ensure the security of supplies in the long term.

In a statement from Berlin, von der Leyen stated that this model is similar to the “REPowerEU” program that was launched after the outbreak of the war in Ukraine with the aim of reducing dependence on Russian energy sources.

This step comes in the wake of the government in Beijing imposing new restrictions last October on exports of rare earth elements and battery components, a measure that European countries considered a direct threat to strategic industries, such as the space sector, defense industries, the automotive manufacturing sector, as well as artificial intelligence technology.

Von der Leyen added that more than 90% of Europe’s imports of rare earth magnets come from China, warning of the risks involved in this excessive dependence. She affirmed that the European Union seeks to find joint solutions with “Beijing,” but at the same time is prepared to take countermeasures if necessary.