German Media: Reducing Dependence on China Is Just Paper Talk

An analysis by the Neue Zürcher Zeitung points out that, so far, the EU's efforts to reduce its reliance on China in critical raw materials have been "more noise than action."

"Reducing dependence on China is just paper talk"

The Neue Zürcher Zeitung article notes that although the EU has taken a series of measures to reduce its dependency on China for rare earth elements, results have been minimal to date:

"In the field of rare earths, China remains unquestionably the most important supplier, and China has already begun using exports of these raw materials as a strategic tool. According to data from the UK’s Royal Institute of International Affairs, China accounts for 86% of global tungsten production, while Europe’s dependence on tungsten imports reaches as high as 80%. In the case of germanium, China produces 83% of the world total, with the EU relying on imports for 42%. For antimony, China’s share of production and the EU’s import dependency stand at 52% and 47%, respectively."

In other critical raw materials, the situation is largely similar.

High dependence on rare earths poses security risks for both NATO and the EU. Many critical raw materials are not only used in defense industries but also widely applied in civilian products such as wind turbines, electric vehicles, and other electronic devices. Given this, military forces, healthcare systems, power grids, and IT industries all face significant supply risks.

In 2024, the EU launched a new regulation—the Critical Raw Materials Act (CRMA)—aimed at reducing dependence on China. To achieve this goal, Brussels plans to provide support and funding for projects involving the mining and processing of critical raw materials within the EU and among partner countries.

At the upcoming G7 summit attended by industrialized nations, critical raw materials will be a core topic. Yet so far, efforts by the EU to reduce reliance in this area have yielded little tangible result. As Wolfgang Bernhart, executive at consulting firm Roland Berger, put it: [“The Critical Raw Materials Act sets ambitious goals, but it remains just paper talk.”]

Original source: toutiao.com/article/1868069607644361/

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