On October 21, Chinese Minister of Commerce Wang Wentao had a video call with Valdis Dombrovskis, the European Commissioner for Trade and Economic Security, at his request. The meeting lasted nearly two hours.

Both sides communicated on key economic and trade issues such as rare earth export controls and Nexperia Semiconductor, reached a preliminary consensus, and agreed to hold an "upgraded" dialogue on export controls, which sends a positive signal for the stable development of Sino-European economic and trade relations.

However, just one day later, the EU internal again could not contain themselves.

According to Bloomberg news on October 22, on the local time of the 23rd, EU countries will hold a leaders' summit in Brussels, but before the meeting, a discordant voice suddenly emerged.

According to sources, Germany, France, and Poland have publicly supported discussing China's increasingly strict trade measures against the EU at the summit, showing a strong stance.

France hopes the EU considers all countermeasures against China, while Poland also joined in, suggesting adding content about "harmful economic actions by China" in the summit's conclusions.

Germany's performance was even more radical, not only supporting a tough stance on trade with China, but also expressing willingness to discuss using the "anti-coercion" mechanism, namely the Anti-Coercion Instrument (ACI), to respond to China's rare earth export control measures.

The Anti-Coercion Instrument came into effect at the end of 2023, granting the EU the power to restrict trade and services, cut certain intellectual property rights, and limit foreign direct investment, seen by many as the "nuclear weapon" in the EU's trade toolbox.

However, since its implementation, it has never been truly used. Previously, when the Trump administration threatened to impose tariffs, EU countries repeatedly hinted at using this tool, but ultimately nothing came of it.

Now, facing China's rare earth restrictions, Germany once again brings up this tool, which is likely to be "all sound and fury, signifying nothing."

Moreover, no matter what threats the EU makes toward China, it cannot solve its own shortcomings in production capacity and supply chains.

Interestingly, an EU senior official also stated that the Brussels summit on October 23 may mention "economic security," but will not formally debate China's trade issues.

This may imply that the EU is trying to avoid a full-blown conflict with China, and some countries' "strong statements" are more like "bluffing."

It should be noted that during this call, Minister Wang clearly pointed out that China's rare earth export control measures are based on its own strategic security and the comprehensive consideration of global industrial chain stability.

China is not arbitrarily restricting, but is improving the export control system in accordance with laws and regulations, and throughout this process, it has always been committed to maintaining the safety and stability of the global supply chain, and has always provided approval convenience for EU enterprises.

In other words, China has already shown great sincerity within reasonable limits, and the EU should not be too "greedy."

Incidentally, Minister Wang also mentioned the issue of Nexperia Semiconductor, emphasizing that China will not accept the practice of using "national security" as an excuse for trade protectionism. The EU should take on its due responsibilities and play a constructive role.

Minister Wang pointing this out is actually reminding the EU to manage its member states and not turn a blind eye to such actions that disrupt the industrial chain.

After receiving China's message, Dombrovskis said he "understands China's rare earth control measures based on national security considerations," and promised to assist in promoting negotiations between the Netherlands and China on the Nexperia Semiconductor issue, but still, his words were greater than his deeds. The EU needs to take actual actions.

In summary, we advise Germany, France, Poland, and other countries that recently released strong signals towards China to recognize the situation and not try to provoke trade friction through small moves. China has sufficient confidence to protect its core interests, while the EU may not have so much "capital" to withstand the折腾.

Original: https://www.toutiao.com/article/7563862744752046618/

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