cross-posted from: https://mander.xyz/post/42997414
The EU is considering legally forcing industries to reduce purchases from China to insulate Europe from future hostile acts, the industry commissioner, Stéphane Séjourné, says.
He made his remarks as the European Commission unveiled a €3bn (£2.63bn) strategy to reduce its dependency on China for critical raw materials amid a global scramble caused by Beijing’s “weaponisation” of supplies of everything from chips to rare earths.
The ReSourceEU programme will seek to de-risk and diversify the bloc’s supply chains for key commodities with a funding initiative to support 25-30 strategic projects in the sector.
It will include new rules to stop scrap aluminium leaving the bloc, recycling of magnets used in car batteries and a new €2bn a year fund backed by the European Investment Bank to support industries diversifying away from cheap Chinese supplies.
Underlining the threats posed by over dependency on China, Séjourné said if industry did not respond, the commission reserved the right to introduce legislation.
“We would force European companies legally to diversify their sources of supply. That is not the case now, and it is not what is proposed in the plan [ReSourceEU] but this is a wake up call, a strong wake up call,” said Séjourné.
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Senior EU officials said that “while the direction is clear” there was a need to “accelerate the process” as China continued to “weaponise” its hold on raw materials for “geopolitical purposes”.
To kickstart the implementation of the strategy, two projects, a molybdenum extraction in Greenland and a lithium mine in Germany will get immediate funding.
The EU will also look at financial support to enable companies to buy from more expensive sources than China and it will set up a “raw materials platform” that will pool company orders and build joint stockpiles.
New restrictions will be introduced on scrap exports in 2026 of the metal and of scrap copper if necessary.
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The EU said the strategy was designed to reduce the impact of “market shocks” such as the disruption to the car industry caused by the recent, now lifted, ban on exports of chips by China in response to the Dutch government taking control of the Chinese-owned chip firm Nexperia.
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Up to €3bn in funding will be mobilised within the next 12 months, with €2bn a year made available by the European Investment Bank in the form of loans, venture debt and private debt plus financing such as loans already issued to a Finnish lithium mine project Keliber.
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Something something let the invisible hand of the market decide.
The West really likes capitalism until they start losing at their own game. Truth is. They’ve always enjoyed stacking the deck of free trade in their own favor. “But China is subsidizing it’s industry and cheating!”. Uh, ok. So why can’t the west just do that? Oh, because we literally have been subsidizing industries all over the place for forever. The west has just not ever had to actually compete with a trade power of equal power.
They liked living in a monopolar world of western control. Too bad. Sucks to suck. Losing at trade in the neoliberal economic world order that they setup to benefit themselves. Getting absolutely outplayed and now taking their ball home.
None of this has to do with “moral actions” or stopping Russia. They literally buy Russian gas like it’s an addiction. This is literally all about the fact that the west is losing out to China’s trade dominance throughout the world.