– China is simply a hegemon, having a decisive function in the export of critical natural materials, those that are essential to make high-tech solutions.
If China is saying that they will restrict their exports, this is evidently dangerous for us. It shows that China, like Russia, is utilizing natural materials to accomplish their geopolitical goals – emphasises Michał Kobosko, associate of the European Parliament from Poland 2050, Renew Europe, in an interview with Newseria Agency.
9 October China one more time introduced restrictions on exports of uncommon earth metals
In October China announced further restrictions on exports of uncommon earth metals, including not only exporters but besides abroad companies utilizing Chinese natural materials or technology based on them. Following a fresh gathering of the leaders of the mediate and U.S. States, a temporary suspension of these restrictions was announced, which should besides apply to EU recipients. Polish politicians stress that specified decisions by China are a serious informing signal for the Union, which should prompt the community to accelerate work on alternate sources of supply. associate States are mostly dependent on the supply of critical natural materials from that country.
On October 9, China one more time introduced restrictions on the export of uncommon earth metals. This time it was a regulation requiring abroad companies to apply for further marketing licences for products containing Chinese natural materials or processing technologies. As the Polish Institute of global Affairs points out, fresh restrictions included, among others, Holm, Erb, Iterb and Tul – essential elements for the production of neodymium magnets, wind turbines, lithium batteries and guidance systems. Beijing justified this step with the request to defend national safety and rational usage of resources, but in practice it increases control of global supply chains.
China is present the largest supplier of 34 of 51 key natural materials
Both the EU and the US are negotiating with China to ease restrictions. Media reports show that the suspension agreed at a fresh gathering of China's leader Xi Jinping with US president Donald Trump is besides to apply to another countries, including the EU. However, experts indicate that specified steps on the part of Beijing are a serious informing signal for EU associate States.
According to the SET Foundation report, China is present the largest supplier of 34 of 51 key natural materials. They supply 97 percent magnesium and 100 percent dense uncommon earth elements. specified a strong dependence represents a real hazard to the European economy and the safety of the associate States. At the same time, we are not doing adequate to build strategical natural materials autonomy. The average time to get permits for fresh mining investments in the EU is up to 10 years, whereas in Canada or Australia it is only 2-3 years.
The euro area is at hazard of disruption in the supply chains associated with Chinese exports of uncommon earth elements
– We, as a Europe in this situation, must do much more than we have so far, firstly, to extract and produce natural materials and to recycle the natural materials we already have. Secondly, to talk to countries like Canada and Australia that have these natural materials delivered mainly by China today. We must look for safe and strategical sources of importing these technologies – says Michał Kobosko.
The scale of the challenges is shown by data from the European Central Bank, which, in its June study, highlighted that the euro area is at hazard of disruptions in the supply chains associated with Chinese exports of uncommon earth elements both for direct imports from China and indirect supplies from 3rd countries. Even if products containing these elements go to Europe from another countries, their suppliers besides depend heavy on Chinese processing plants. The ECB has indicated that China delivers around 70% of uncommon earth elements to the euro area, and is central to refining another key natural materials specified as lithium and cobalt.
Since the start of the customs war with the EU, China, India, we have a completely fresh macroeconomic situation
"Europe must unite on this issue and work very closely together, due to the fact that since Donald Trump is the president of the United States, we have a fresh geopolitical situation. Since the start of the customs war with the EU, China, India, we have a completely fresh macroeconomic situation and Europe must rapidly find itself in this. We are stronger due to the fact that we are not alone as Poland, we are working together, so at this point the synergy must work," says Dariusz Joński, associate of the European Parliament from the KO.
