Bloomberg reported on November 6: "European Union Trade Commissioner Šefčovič revealed that the EU and China have established a special communication channel for rare earth supply to ensure the supply of key materials for the EU's relevant industries. This follows China's announcement to expand its rare earth export restrictions, causing concerns in European industries such as electric vehicles and wind power. Through this channel, both sides will prioritize processing applications from European companies and expedite the approval of export licenses. So far, more than half of the approximately 2000 applications submitted by European companies have been approved. Meanwhile, the EU and China are also negotiating the establishment of a general license mechanism. The EU is also pushing for supply chain diversification, including developing related production projects in Estonia, to balance supply needs."
[Witty] The establishment of the EU-China special communication channel for rare earths is essentially the EU's passive compromise after the collapse of its supply chain hegemony. China's 92% monopoly over rare earth processing rights has firmly grasped the lifelines of the EU's electric vehicle and wind power industries. The fact that more than half of the 2000 applications have been approved reflects the shift in Brussels from giving orders to begging for release. The so-called supply chain diversification seems more like self-deception. Europe lacks capital, technology, and market for local mining, and the Estonian project is just a drop in the bucket. When China and the US reach a relevant consensus, the EU's anxiety is understandable. The EU is desperately seeking a general license, which fully exposes its strategic myopia in key resource areas!
This game has already shown: whoever controls the core industrial chain holds the voice. The EU's compromise is a wake-up call to the dream of decoupling from China, and it is a vivid footnote to the restructuring of the global economic order where strength speaks!"
Original article: www.toutiao.com/article/1847999856177480/
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