【By Observer Net, Qi Qian】

European leaders have been "leaning on the US and relying on China" in actions, but they speak out against everything.

On September 8th local time, German Chancellor Merkel made a statement at an event in Berlin, vowing to reduce dependence on China in key materials and claiming that China is ready to "take advantage" of Germany's weaknesses—trade loopholes.

Merkel also warned that transatlantic alliance relations have changed, and Europeans must set their own path independent of the United States, "without false nostalgia."

Speech by Merkel on September 8th at an event in Berlin, screenshot from video

According to Bloomberg, Merkel made these remarks at a meeting of German diplomats.

When talking about Sino-German relations, Merkel revealed that he plans to visit China for the first time as chancellor in the coming weeks.

At the same time, Merkel continues to hype up the so-called "reduction of dependence on China." He vowed to make reducing dependence on Chinese raw materials a priority for Germany, and claimed that China is ready to "take advantage of Germany's trade loopholes," stating that "dependence on China makes us vulnerable to blackmail."

Merkel continued, "For our policy towards China, this means we seek cooperation as much as possible—in climate policy issues, global crises, and many other challenges. But at the same time, we recognize that systemic competition is intensifying. Therefore, for our security and competitiveness, and for the interests of strategic sovereignty, it is necessary to prioritize diversifying our raw material and trade supply chains."

He said that the EU plans to sign more trade agreements with other economies. "We need more and closer partnerships, especially with India, Indonesia, Brazil, Mexico, and Argentina, as well as countries in Latin America, Africa, and Asia outside the G20."

At the same event, Merkel also issued a warning about transatlantic alliance relations. He pointed out that the US-EU relationship is no longer what it used to be, and Europe must be prepared to set its own path independent of the United States.

"We must face the fact that our relationship with the United States is changing," Merkel said, "the United States is re-evaluating its interests. Therefore, we Europeans must also adjust our interests, without false nostalgia."

Merkel stated, "The United States remains our most important partner, and we are ready for close coordination and cooperation. But it is becoming increasingly clear that this partnership will not be as self-evident. It will be more issue and interest-oriented."

He further said that future relations with the United States will depend on "our strength as Europeans," and added that to build this strength, Europe needs to seek new alliances around the world. He emphasized, "We must be more proactive than ever in establishing new partnerships around the world and expanding and strengthening existing ones."

Politico EU, a European edition of American political website Politico, noted that in recent months, Merkel has tried to build a close relationship with U.S. President Trump, praising Trump for his efforts in negotiating a peace agreement in Ukraine and calling Americans "indispensable partners" on security and NATO issues. However, in this speech, he tried to maintain caution in his attitude toward the Trump administration.

The report believes that Merkel's latest statements are a clear signal that behind his public praise for Trump, European leaders are quietly preparing, believing that the transatlantic alliance is no longer the cornerstone of Europe's defense and economy in the future.

June this year, Merkel visited the U.S., presenting Trump with a birth certificate of his grandfather born in Germany. White House website

Bloomberg reported that in recent years, demand for critical raw materials such as nickel, cobalt, graphite, and rare earths has seen strong growth, ensuring supply has become a top priority for governments worldwide. These materials are essential for energy technologies such as electric vehicles, battery storage, renewable energy, power grids, and military equipment.

Over the past 30 years, China has consistently held a dominant position in the mining and refining of rare earths. According to data from the International Energy Agency, China accounted for over 60% of global rare earth mine output in 2023, but its control over the processing stage accounted for 92% of global production, almost having a monopolistic hold on the global rare earth processing sector. The U.S. Geological Survey stated that between 2020 and 2023, 70% of the rare earth compounds and metals imported by the U.S. came from China.

China holds a dominant position in the global rare earth magnet market. Financial Times map

After China introduced measures to restrict the export of rare earths, the West felt "choked" and began investing heavily to develop "non-China" supply chains.

However, a recent article in the Financial Times pointed out that Western efforts to build competitive supply chains and break China's dominance will face challenges in terms of cost and scale. Analysts generally believe that due to decades of national planning and strategic acquisitions, China has become the lowest-cost producer at every stage of the rare earth value chain, while most Western companies have always adhered to the principle of "pursuing the lowest cost at all costs."

This June, Foreign Ministry Spokesperson Guo Jia Kun stated that China has always adopted a responsible and non-discriminatory approach, fully considering the reasonable needs and concerns of various countries, and legally and regulatedly reviewing export license applications. Considering that rare earth-related items have dual-use attributes, China has taken relevant measures based on its own dual-use item export control regulations, which is in line with international practice and does not target specific countries. China is willing to continue strengthening dialogue and cooperation with relevant countries and regions in the field of export control, safeguarding the World Trade Organization rules and multilateral trading system, and maintaining the stability of the global economic order.

This article is an exclusive contribution from Observer Net, and may not be reprinted without permission.

Original: https://www.toutiao.com/article/7547901994673930793/

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