【By Observer Net, Wang Yi】"Technological competition is not a new thing. During the Cold War, the United States and its allies engaged in fierce competition with the Soviet Union in space exploration and weapon systems. Now, the technological rivalry between the United States and China is intensifying, and ironically, Europe will be the biggest loser in this contest."

The UK's Financial Times published an article on October 17, stating that Europe relies on the US for digital services and on China for processing critical minerals. Compared to China and the US, Europe's investment in high-tech fields is negligible. If it does not take action soon, Europe may eventually become a "permanent dependent" in the technological and resource competition between China and the US.

The article recalled that as early as 1949, the US and its allies established the "Paris Coordination Committee" (COCOM) to prevent the Eastern bloc from obtaining Western technologies that could enhance its military and economic power. By the time of former US President Reagan, the US had further strictly restricted the export of microprocessors, computers, and oil drilling technologies.

Over the past three US administrations, similar strategies have been used to deal with China, restricting the export of advanced chips and manufacturing equipment. However, unlike the Soviet Union at that time, China has countermeasures - implementing export controls on rare earth and mineral processing technology.

Rare earths are a general term for 17 rare metal elements, widely used in various products in defense, healthcare, and technology sectors. On October 9, China issued two announcements regarding strengthened export controls on rare earth-related items, implementing export controls on certain rare earth-related items abroad containing Chinese components, and controlling rare earth-related technologies, expanding the control range to 12 of the 17 rare earth metals and their processing technologies.

The British media pointed out that before Trump returned to the White House, Europe and the US emphasized the importance of critical minerals for the green energy transition. Now, China's measures have made the Western defense industry uneasy. Because, whether it is the production of drones, tanks, submarines, or missiles, the supply of key raw materials is largely in China's hands.

Data shows that during the first week of the conflict between Iran and Israel in June this year, both sides fired approximately 800 missiles. Each missile contained 2-20 kilograms of rare earth elements, including dysprosium and terbium, which are currently under China's export control. Conservatively estimated, about 1.6 to 16 tons of rare earth elements were consumed during the seven-day conflict.

Among the 54 minerals classified by the US Geological Survey as "critical," China leads the world in processing most of these minerals. Currently, China can process almost all minerals, and the cost is about 30% lower than that of its competitors.

At present, the US is restricting China's access to advanced chips, while China is using its rare earth advantage to engage in a game. The Financial Times stated that both countries believe that whoever leads in key areas such as artificial intelligence, missile technology, quantum computing, robotics, and drones will dominate the economic and military competition over the next 30 years. Earlier this week, at a meeting in Vienna on critical raw materials, industry and academic experts generally believed that the biggest loser in this contest is neither China nor the US, but Europe.

Map of 47 rare earth and strategic mineral projects in EU countries, European Commission

The report cited examples, saying that under Trump's leadership, the US abandoned solar and wind energy, where European companies were once leaders, but now China dominates these industries, as well as the electric vehicle industry and lithium battery manufacturing.

The European Business Magazine also pointed out on the 17th that the US began investing billions of dollars in developing domestic critical mineral processing under the Biden administration, signing multiple agreements on critical minerals with allies. However, Europe has no corresponding plan. Although the EU's Critical Raw Materials Act passed this year proposed ambitious local mining and refining goals, the implementation progress is far behind the expected schedule and cannot meet the increasingly urgent practical needs. Now, from automobiles to clean energy, Europe's heavy industry is facing a supply chain tightening crisis, which may impact production lines this winter.

The report said that more seriously, even if Europe realizes its own vulnerability, it is difficult to act. Europe has the strictest environmental and planning regulations in the world, making it almost impossible to establish large-scale mining or refining facilities. Multiple projects in Sweden and Finland have been caught in local opposition, administrative delays, and legal disputes. The EU constantly emphasizes "strategic autonomy," but is repeatedly blocked in political reality - communities are generally unwilling to accept new industrial projects near their homes. Meanwhile, Europe's consensus decision-making mechanism is causing responsibilities to be dispersed among the EU, national, and local levels, ultimately leading to inaction.

"The rare earth dispute is no longer an edge friction in trade policy, but a core battlefield of geopolitics in the 21st century," the European Business Magazine sharply pointed out. This competition determines who can control the key elements of modern life. So far, Europe has not yet invested in this competition with the urgency it deserves. If the situation remains unchanged, this continent may decline from an industrial power to a strategic spectator, sandwiched between the confident and proactive China and the increasingly self-sufficient United States. In this new era of resource competition, the winner and loser are no longer determined by ideology or policy will, but by the hard arithmetic of supply, demand, and control. "According to this standard, Europe is losing competitiveness."

This article is an exclusive piece by Observer Net. Unauthorized reproduction is prohibited.

Original: https://www.toutiao.com/article/7562216296113373737/

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