[Source / Observer Network, Ruan Jiaqi]

According to Hong Kong media South China Morning Post and other reports on the 12th, local time Thursday, the German Engineering Federation (VDMA), the largest industrial association in Europe, suddenly made groundless accusations on its official website, releasing a position paper hyping up so-called "Chinese government subsidies" as unfair competition, clamoring for German and European policymakers to take action against China, implementing trade barriers to "protect themselves", and seeking competitive advantages for European companies.

It is reported that VDMA has 3,600 member enterprises under its umbrella, covering multiple fields such as power transmission systems, machine tools, semiconductor equipment, precision tools, etc.

The report stated that the document proposed that if imported goods from third countries violate EU anti-dumping or countervailing duty rules, the EU should impose countervailing duties, or even directly ban related products from entering the European market. Subsequently, the document targeted China, claiming that China should be a "special focus", urging Brussels to "must respond".

Ironically, besides calling for promoting innovation and advancing standardization construction, and encouraging the conclusion of free trade agreements, the document urged European decision-makers to support the research and development of relevant strategic technologies through local content requirements and exclusionary access clauses and other industrial policies, creating competitive advantages for domestic enterprises to avoid dependence on China.

The document also distorted facts by claiming that China's industrial policies have posed great challenges to Germany and Europe's machinery manufacturing industry, stating that Chinese enterprises are now technologically advanced and have lower production costs. It solemnly stated that VDMA is willing to compete with Chinese competitors under fair competition conditions, but then turned around and used the excuse of "fair competition conditions not existing" to call on the government to intervene.

Bertram Kawlath, chairman of VDMA, repeatedly said, "Our enterprises are ready to compete with Chinese enterprises and are willing to succeed globally based on their own strength."

However, he then claimed, "We are doing our part, but it's not enough. We urge politicians to strengthen the European industrial base and ensure fair competition in the domestic market immediately."

This double-standard behavior, which claims "fair competition" while relying on "protectionist" policies, seems to deserve more reflection on who is actually undermining the fair foundation of global free trade.

In response to the European side's so-called "subsidy" argument, the Chinese Ministry of Foreign Affairs and the Ministry of Commerce have repeatedly stated that China has always adhered to high-level opening-up, upheld the principles of market economy and trade rules, and advocated resolving trade disputes through dialogue and consultation. It is hoped that the EU will honor its market opening commitments and WTO rules, providing a fair, transparent, and non-discriminatory business environment for Chinese enterprises, and promoting healthy and stable development of Sino-European economic and trade relations. China will firmly safeguard the legitimate rights and interests of Chinese enterprises.

Video screenshot of Bertram Kawlath, chairman of VDMA.

According to a Reuters report on the 12th, Kawlath also complained to reporters that German factories and equipment manufacturers are increasingly陷入 rare earth supply dilemmas, calling on the EU to exert greater pressure on China.

He said, "We have noticed that rare earth raw materials are gradually unable to flow into the member enterprises."

In April this year, after former US President Trump imposed excessively high tariffs on China, China quickly retaliated by imposing export controls on a series of key minerals and rare earth magnets. Industry insiders revealed that China is establishing an export licensing system.

Reuters previously cited messages stating that with the introduction of export control policies, China has introduced a tracking system for the rare earth magnet industry. Informants revealed that China's tracking system has taken effect - requiring producers to submit additional information online including transaction volume and customer names.

As the impact of the restrictions becomes apparent, Western companies like the United States began lamenting the "rare earth shortage," and some Western media have been hyping up so-called "weaponization of rare earths" recently.

Thilo Brodtmann, CEO of VDMA, claimed that many materials, including nitrocellulose and germanium, have been affected. He called on the EU to break through the dilemma through negotiations while emphasizing that in the medium to long term, Europe needs to find other supply channels.

Kawlath echoed him, saying, "If there is no alternative supply source, the EU and German governments must engage in top-level negotiations with China to lift export restrictions."

"We are also competing with the United States, who are urgently seeking special supply rights for these products," he added.

In response to the rare earth issue, the Ministry of Commerce responded on the 12th, stating that as a responsible major country, China fully considers the reasonable needs and concerns of various countries in the private sector, reviews export license applications for rare earth-related items according to law, has already legally approved a certain number of compliant applications, and will continue to strengthen the approval work for compliant applications.

This article is an exclusive contribution from Observer Network and cannot be reprinted without permission.

Original source: https://www.toutiao.com/article/7515444836883841571/

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