【By Observer Net, Qi Qian】

EU leaders will hold a summit in Brussels on October 23 local time.

At the time of this summit, the EU is in turmoil over China's countermeasures. According to Bloomberg news on the 23rd, the EU is studying trade options with China in case no solution is reached between China and the EU, as a response to China's latest measures on rare earth exports. A source said that EU countries may discuss trade issues with China at the summit.

It has been revealed that the European Commission is preparing a list of trade measures, expected to be released by the end of the month, trying to increase the EU's leverage and influence in Sino-EU trade negotiations. The commission is also developing short-term plans to protect key supplies and ensure other sources.

The European Commission spokesperson refused to comment on the preparation of measures, as the commission has consistently refused to discuss specific trade measures against China.

Notably, Bloomberg reported a day earlier (on the 22nd) that Germany, France, and Poland support discussing China's increasingly strict trade measures towards Europe at the summit. France hopes the EU considers all possible retaliatory options against China, while Germany is willing to discuss using the "counter-coercion" mechanism, a so-called "nuclear option" in trade, as a response to China's latest rare earth export control measures.

In August, German Chancellor Merkel met with French President Macron. Oriental IC

The report mentioned that a report published by the European Council on Foreign Relations earlier this week suggested potential tools available to the EU include aviation components, old-type deep ultraviolet lithography machines, and special steel products such as high-precision bearings.

According to a draft seen by Bloomberg, the EU stated in a document that "in order to offset so-called 'unfair trade' practices, the European Council invites the Commission to make full use of the EU's economic security tools".

In addition, the EU is also discussing with G7 countries the possibility of coordinating efforts to reduce dependence on Chinese rare earths.

In recent years, the EU has always promised to protect local manufacturers from the "Chinese impact." As China's technological strength rises, Western countries have dropped the mask of "free market." At the same time, China's recent implementation of several new export controls on rare earths has made Europe even more uneasy.

Rare earth materials are widely used in high-tech products, from consumer electronics to fighter jets, and are indispensable.

Data shows that China dominates the mining and production of rare earths. Bloomberg map

Recently, China's leading semiconductor company, Wintech Technology, has encountered major regulatory challenges. Its core asset in the Netherlands, Nexperia, had its assets and intellectual property frozen for one year starting from September 30 due to a directive from the Dutch government.

According to an earlier report by Bloomberg, the EU is considering new regulations that would require Chinese companies investing in the EU to meet specific conditions to enter key markets, including mandatory technology transfer, using a certain percentage of EU goods or labor, achieving product value-added within the EU, and possibly even forcing joint ventures, to enhance their own industrial competitiveness.

According to the website of the Ministry of Commerce, on October 21, Minister Wang Wentao held a video conference with EU Commissioner for Trade and Economic Security, Shevchovych, at the latter's request, exchanging in-depth views on key Sino-EU economic and trade topics such as export controls and the EU's anti-subsidy case on Chinese electric vehicles.

Wang Wentao stated that regarding the issue of rare earth export controls, China's recent measures are normal practices to improve its 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 safety and stability of the global supply chain and has always provided approval convenience for EU enterprises.

Wang Wentao stated that regarding the Nexperia issue, China firmly opposes the generalization of the concept of "national security," and hopes the EU will play a constructive role, urging the Dutch side to adhere to the spirit of contract and market principles, and put forward a proper solution as soon as possible from the perspective of maintaining the safety and stability of the global supply chain.

On the 22nd, a source told Bloomberg that Germany, France, and Poland support discussing China's increasingly strict trade measures towards Europe at the EU leaders' summit scheduled for the 23rd. France hopes the EU considers all possible retaliatory options against China, while Germany also supports a tough approach to trade with China and is willing to discuss using the "counter-coercion" mechanism as a response to China's latest rare earth export control measures.

The Anti-Coercion Instrument Act (ACI) 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 people see it as a "nuclear option," whose ideal role should be deterrence, but it has never been used so far. After the Trump administration imposed tariffs, EU countries repeatedly hinted at using this tool, but eventually nothing came of it.

According to another report by European News on the 23rd, although not officially on the agenda, the China issue will inevitably become one of the discussion topics at the summit.

The report pointed out that however, EU member states still have serious differences on how to respond to trade issues with China, and are concerned that any escalation between China and the EU could cause a heavy blow to the European economy. Currently, the European economy is still suffering from the impact of Trump's tariffs.

European News said that this means that using the trade "nuclear option" is still a distant idea for the EU.

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

Original: https://www.toutiao.com/article/7564258402822521363/

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