Rare Earths: EU Debates Imposing "In-Kind" Tariffs on China to Ensure Critical Material Supply
According to Bloomberg, the European Union is considering a new trade measure that would require certain Chinese exporters to provide key raw materials to the EU's reserve when exporting specific goods to the EU. In response to concerns about China's control over the export of critical raw materials, the EU is seeking solutions to ensure its importers have a stable supply and higher security, such as establishing longer-term licensing systems.
According to sources cited by Bloomberg, this provision, referred to by officials as an "in-kind tariff," is one of several options being considered by the EU when it failed to resolve the issue of China's export controls on critical raw materials through diplomatic channels.
According to sources, the discussions are still ongoing and no decisions have been made yet. Any measures would need to be agreed upon within the committee and gain support from major member states. Some EU countries, including Germany, have been reluctant to take retaliatory measures against Beijing, fearing it could escalate trade disputes.
Since April this year, Beijing has been restricting the export of rare earth magnets, which are widely used in areas ranging from electric vehicle batteries to defense manufacturing. This move poses a significant challenge to European industries, at a time when the EU is striving to diversify its supply chains to reduce reliance on China.
According to sources, earlier this week, the US and China reached an agreement to suspend China's planned stricter export control measures. This move has eased some of the EU's concerns and reduced the likelihood of the EU taking immediate retaliatory actions.
As a Chinese trade delegation is scheduled to meet with EU counterparts in Brussels on Friday, both sides are conducting internal discussions on potential countermeasures. The EU is seeking solutions that can provide importers with a stable supply and greater certainty, such as establishing long-term licensing systems.
In addition, the EU is developing emergency plans to deal with sudden supply chain disruptions, while advancing long-term initiatives to ensure and diversify its supply sources. The EU is also participating in efforts by the G7 group to establish a critical minerals alliance, aiming to cooperate on supply agreements, reserve agreements, and resource sharing.
Sources: rfi
Original: www.toutiao.com/article/1847522500719625/
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