4-7-2023 (BRUSSELS) The European Commission raised concerns on Tuesday (Jul 4) regarding China’s plans to impose export limitations on strategic metals widely used in the semiconductor industry. The Commission expressed doubt that the move was motivated by security concerns.
China recently announced that starting from August 1, it would implement export controls on gallium and germanium products, citing national security as the primary reason.
A spokesperson for the Commission stated during a daily briefing, “The Commission is concerned that these export restrictions are unrelated to the need to protect global peace, stability, and the implementation of China’s non-proliferation obligations arising from international treaties.”
As part of its assessment of the potential impact on global supply chains and European industry, the EU executive called on China to restrict exports only for “clear security considerations” in accordance with World Trade Organization rules.
The Commission has identified gallium and germanium as “strategic” raw materials crucial for the green and digital transition of the European Union. The bloc has set 2030 targets for increased mining, recycling, and processing of these elements.
These metals play a vital role in semiconductors, electric vehicles, and high-tech industries. On Tuesday, German industry leaders warned that Europe must reduce its dependence on critical raw materials required for cleaner and more digital economies following China’s announcement of restrictions on certain metals used in semiconductors.
The export restrictions imposed by China “highlight the urgency for Europe and Germany to quickly reduce their dependency on critical raw materials,” remarked Wolfgang Niedermark, a member of the BDI German industrial association.
In a position paper, the group emphasized that Germany and Europe already have a greater dependency on mineral raw materials such as rare earths from China compared to their reliance on oil and natural gas from Russia.
Bitkom, another German industry group, called for significant measures to enhance Germany and Europe’s digital sovereignty. Bitkom’s managing director, Bernhard Rohleder, stated that German technology and security policies must focus on ending unilateral dependencies and developing capabilities and competencies in key digital technologies.
Berlin has advocated for a “derisking” strategy towards China in the wake of the Russian invasion of Ukraine, which exposed the risks of close reliance on Moscow for energy resources. This experience underscores the need to avoid a similar situation with Beijing.
Last week, European Union member states adopted the Critical Raw Materials Act, a central component of the EU’s strategy to ensure the competitiveness of its industries against the United States and China.
Niedermark from BDI acknowledged that the agreement on recycling and processing raw materials sends a crucial signal but also called for efforts to establish domestic mining in Europe to further reduce dependency.
