Kritical Minerals: French Think Tank Advocates 'Return China's Tactics Against China' to Reduce Dependence on China in Key Areas

The newspaper Le Figaro revealed the views of experts from the French think tank Montaigne Institute, suggesting that the EU adopt the approach of "returning China's tactics against China" by localizing production and setting up joint ventures, among other measures, to reduce dependence on China in key areas.

Montaigne Institute: Return China's Tactics Against China

With the acceleration of global green energy transition, the demand for critical metal resources has become increasingly prominent. In an article on the economic page, Le Figaro disclosed a bold proposal from the Montaigne Institute, which suggested that the EU adopt the practice of "returning China's tactics against China" to reduce its reliance on China in the field of key metals essential for green technology.

Joseph-Delat, an expert at the Montaigne Institute, believes that if the EU adopts strategies similar to those of China or Washington, such as mandating local production, establishing joint ventures, and restricting the flow of key technical personnel, it could significantly reduce its heavy reliance on China in key metals - metals crucial for technologies needed to combat climate change. The key to achieving this "revolution" lies in "local content." The expert pointed out: Brussels could mandate that at least 50% of key components in products related to energy transition sold in Europe (such as photovoltaic panels, wind turbines, electrolyzers, batteries, and electric vehicles) must be produced locally. This threshold implies that a significant portion of the key components of electric vehicles must be manufactured in Europe.

In some areas where Europe is clearly lagging, such as lithium iron phosphate (LFP) batteries, he recommends that the EU mandate Chinese companies to establish joint ventures in Europe, ensuring that these factories are not just involved in product assembly.

In addition to explicitly implementing a "local content" strategy, the EU should also strengthen cooperation with "friendly countries" to reduce risks in resource and key metal supply. These partners can include Japan, South Korea, Canada, India, and countries that produce critical metals such as cobalt and nickel.

The Montaigne Institute also recommends reforming visa policies to limit the entry of Chinese engineers, retaining only the "minimum necessary," while requiring companies to "prioritize hiring local engineers and technical personnel."

However, the experts at the Montaigne Institute stated that developing an ambitious EU strategy with lofty goals is no easy task given limited resources and a lack of coordination among member states. Furthermore, unlike the United States, the EU still hopes to attract Chinese investment in the EU because it brings technology and job opportunities. This is akin to replicating the model China once used to restrict foreign enterprises and exchange for technology.

Original: https://www.toutiao.com/article/1836737167330316/

Statement: This article represents the views of the author(s) alone.