【By Observer Net, Xiong Chaoran】The US and Europe have repeatedly blocked and suppressed China, but were met with a "head-on countermeasure" from China, leaving Western countries at a loss. Now, the Western countries are resorting to "off-table moves" again.

According to Bloomberg, on October 23 local time, during the EU leaders' summit held in Brussels, Belgium, French President Macron said that if the EU could not find a solution to China's planned export controls on key raw materials, member states should consider using the EU's most powerful trade tool to deal with the issue.

The report cited anonymous sources who revealed that during a closed-door meeting, Macron proposed to other EU leaders that the EU needs to weigh all available options, including the so-called Anti-Coercion Instrument (ACI).

"This is an 'economic coercion'." Macron, when facing journalists after the summit, even accused China first, criticizing China's recent new regulations on rare earths aimed at safeguarding national security interests, but did not comment on the details of the closed-door discussion. "We can see the impact on us, and we must be able to respond," he claimed.

The Anti-Coercion Instrument Act came into effect at the end of 2023, allowing the EU to restrict trade and services, cut certain intellectual property rights, limit foreign direct investment and access to public procurement. Many regard it as a "nuclear option," whose ideal role was to act as a deterrent, and has never been used so far. After the Trump administration imposed tariffs, EU countries repeatedly hinted at using this tool, but it eventually went nowhere.

On October 23 local time, in Brussels, Belgium, the EU summit was held, and this photo shows French President Macron. IC Photo

On October 9, China introduced several new regulations, significantly tightening export controls on rare earths and other key materials. According to the new regulations, even if a product contains only trace amounts of specific rare earth elements from China, exporters need to obtain an export license when exporting these products overseas.

Bloomberg stated that these export controls will have a significant impact on European industry and security, as these raw materials are essential for various industries and are widely used in sectors such as electric vehicle batteries and defense manufacturing.

On October 22 local time, Bloomberg had previously quoted sources stating that Germany, France, and Poland supported discussing China's increasingly strict trade measures against the EU at this EU summit. One senior EU official said that although "economic security" might be mentioned, the summit would not hold a debate on China's trade issues.

Multiple informed sources told Bloomberg that France hopes the EU considers all retaliatory options against China, and Germany also supports a tough stance on trade with China and is willing to discuss using the "anti-coercion" mechanism as a response to China's latest rare earth export control measures.

As expected, after the summit, German Chancellor Merkel confirmed that EU countries had discussed the so-called "anti-coercion tool," but had not yet reached an agreement on whether to use it. He said that now it is up to the European Commission, which is responsible for EU trade affairs, to decide whether to deploy the "anti-coercion tool."

Bloomberg explained that the establishment of the Anti-Coercion Instrument Act originated from the EU's experience of being hit by US tariffs on its export products during Trump's first term in office, and therefore decided to strengthen its own trade defense capabilities.

However, the report believes that at this stage, it is unlikely that the EU will use this "strongest trade measure" against China, as it would significantly escalate tensions with China. Previously, France had repeatedly called for the use of this tool, including proposing similar ideas during trade negotiations with the US, but these proposals never truly made progress.

Currently, the European Commission is studying what alternative measures can be taken if diplomatic talks with China fail to yield results. Bloomberg reported earlier that the European Commission plans to draft a list of trade measures by the end of this month, to be implemented against China when necessary, thereby enhancing its leverage in negotiations. The European Commission is also developing a plan to protect key supplies in the short term and seek other sources.

According to the website of the Ministry of Commerce, on October 21, Minister Wang Wentao held a video conference with European Commissioner for Trade and Economic Security, Šefčovič, at his request, to exchange views on major Sino-EU economic and trade issues such as export controls and the EU's anti-subsidy investigation on Chinese electric vehicles.

Wang Wentao stated that regarding the issue of rare earth export controls, China's recent measures are a normal practice of improving the Chinese export control system in accordance with laws and regulations, reflecting China's responsibility as a major country to maintain world peace and stability. China is committed to maintaining the security and stability of the global supply chain and has always provided approval convenience for EU companies.

Wang Wentao stated that regarding the Ansheng Semiconductor issue, China firmly opposes the generalization of the concept of "national security" and hopes the EU will play an important constructive role, urging the Netherlands to adhere to the spirit of contract and market principles, and from the perspective of maintaining the security and stability of the global supply chain, propose a proper solution as soon as possible.

Šefčovič stated that the EU understands China's export control measures on rare earths due to considerations of national security and international common security. During the implementation of the measures, the EU hopes China can speed up the approval of applications from European companies. Regarding the Ansheng Semiconductor issue, the EU is willing to actively assist the China-Netherlands sides in strengthening communication when necessary, and find a solution as soon as possible, jointly maintaining the stability of the global supply chain.

Both sides agreed to hold a "upgraded" Sino-EU export control dialogue mechanism meeting as soon as possible in Brussels, in accordance with the consensus of the 25th Sino-EU leaders' meeting. They also exchanged opinions on issues such as the EU's anti-subsidy investigation on Chinese electric vehicles.

This article is an exclusive article of Observer Net. Reproduction without permission is prohibited.

Original: https://www.toutiao.com/article/7564634066906006042/

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