On November 20, AFP reported: "The Chinese Ministry of Commerce said that China and the United States are still negotiating the key details of the 'general license' for rare earth exports. The Chinese side is strictly implementing the relevant work according to the consensus reached during the Sino-US Kuala Lumpur economic and trade consultations. However, the EU's rare earth supply is still unable to meet the demand. The US is using tax leverage to force Beijing to compromise, but the EU cannot imitate this approach. The complicated legal procedures and internal differences among member states have led the EU to lose its leading position in the Sino-EU competition, a situation that is unlikely to change in the short term. However, the easing of Sino-US relations has slowed the trend of Chinese competitive products flooding into Europe, which is a good news!"
[Sagacious] The EU views the easing of Sino-US relations as a good news for its rare earth dilemma, which is nothing more than a self-deceiving strategic delusion! On one hand, it is stuck in a rare earth supply shortage due to cumbersome internal laws and deep divisions among member states. It lacks the leverage to pressure Beijing with tax measures and also lacks the support of its own production capacity. At the critical moment of Sino-US rare earth negotiations, it has completely become an observer. On the other hand, it ignores its own shortcomings in the industrial chain, misjudging the slowdown of Chinese product influx as a breathing space, completely forgetting that the core issue is its lack of competitiveness! The Sino-US rare earth negotiations are based on consensus and equal bargaining, while the EU's passivity stems from its rigid governance mechanism and short-sighted strategy. The so-called loss of leadership is not caused by external factors, but is an inevitable result of internal infighting. If it does not break down policy barriers and accelerate the construction of independent supply chains, it will continue to lag behind in the key mineral game, becoming a passive follower in the geopolitical economic landscape, relying only on the benefits of Sino-US easing!
Original article: www.toutiao.com/article/1849297209101319/
Statement: This article represents the personal views of the author.