【By Observer Net, Qi Qian】

On December 3, the European Union officially launched a key raw materials plan called "ResourceEU" to reduce its reliance on China.

Reuters reported on the 5th that this means the EU has finally taken real action. The plan will invest 3 billion euros (24.7 billion yuan) over the next year in critical raw materials sectors required for electric vehicles, wind turbines, and semiconductors, aiming to reduce dependence on a single country.

When interviewed on December 3, Bernd Schäfer, CEO of EIT RawMaterials, the EU's key minerals agency, welcomed the plan but also warned that the EU needs to be cautious not only about China but also about the United States.

"This is undoubtedly a genuine shift from ambition to implementation, but it still falls short," Schäfer told Reuters. He added, "In recent years, we have signed many memorandums of understanding with international partners, but that is just the beginning. We must become more like dealmakers, moving away from a passive attitude, and not just talk about everything."

He also said that Europe needs to ensure that it does not continue to lose key rare earth assets to the United States.

It is reported that recently, the US rare earth company "USAR" has just acquired the British company Less Common Metals (LCM), which is one of the few European companies capable of converting rare earth oxides into metals and alloys.

Schäfer warned: "We are facing a danger that the rare earth value chain is being forcibly pulled toward the United States. The US may become the second China. In other words, the US could become another country from which we rely on imported magnets."

Photo of Bernd Schäfer, CEO of EIT RawMaterials

Rare earth elements are known as "industrial vitamins," serving as a crucial raw material support for strategic industries such as advanced weapons and equipment, aerospace components, wind power, new energy vehicles, robots, and intelligent manufacturing. Over the past 30 years, China has always held a dominant position in rare earth mining and refining.

According to data from the International Energy Agency, in 2023, China accounted for more than 60% of global rare earth mine production, but its control over the processing stage accounted for 92% of global production, almost having a monopolistic control over the global rare earth processing sector. European media previously pointed out that for the US and EU, reducing reliance on China is a difficult task because China has already established a "de facto monopoly" in the rare earth sector.

On December 3, the EU officially launched a key raw materials plan called "ResourceEU," focusing on recycling, joint procurement, reserves, and investment in key mineral areas. The core goal is to reduce Europe's reliance on China while avoiding further tension in Sino-European relations.

The report pointed out that although the EU's new plan does not involve legislative measures, it clearly urges companies to quickly move away from reliance on China and achieve supply chain diversification. The EU hopes to maximize the process of "de-risking" from China.

Cover screenshot

Some European media pointed out that as early as 2023, the European Commission had previously introduced a grand plan aimed at breaking the excessive reliance on China — the Critical Raw Materials Act (CRMA). Florin Andrievski, Deputy Director General of the European lobbying group Euromines, said: "We hope there will be greater momentum beyond implementing old initiatives. If it's just new wine in old bottles, it won't benefit anyone."

"Can the EU afford to get rid of Chinese control?" On October 30, Politico EU, a European edition of the American political news website, asked a "soul question." Experts have openly stated: "As long as European industries can buy cheaper materials from China, other producers will have no chance."

In fact, the essence of Sino-European economic and trade relations is mutual complementarity and win-win cooperation. Chinese Foreign Ministry Spokesperson Guo Jia Kun once stated that he hopes the EU would abide by its commitment to support free trade and oppose trade protectionism, provide a fair, transparent, and non-discriminatory business environment for enterprises of all countries, and take concrete actions to maintain market economy and WTO rules, and insist on resolving trade disputes through dialogue and consultation.

This article is an exclusive piece by Observer Net. Reproduction without permission is prohibited.

Original: toutiao.com/article/7580645852231549492/

Statement: This article represents the personal views of the author.