How can Europe make critical raw material production financially viable outside China? And how can it deter Beijing's use of the critical raw material weapon while diversification efforts are still underway?
These questions were at the heart of the discussion at the launch of Joris Teer's Chaillot Paper, 'Beijing's critical raw material weapon – And how to dismantle it'.
Presenting the paper, Joris argued that China's export restrictions on critical raw materials should not only be seen as retaliation in the US-China trade war. They are part of a broader strategy to strengthen China's industrial dominance, extract concessions, reduce external vulnerabilities and advance Beijing's core interests. And despite diversification efforts, European, American and Japanese efforts are not on track to solve the problem fast enough.
In conversation with EUISS Director Steven Everts and Joris Teer, Denis Redonnet, Deputy Director General at DG TRADE and Economic Security, discussed the report’s findings, the ongoing EU efforts to tackle these challenges, and what more should be done. Questions from the audience explored whether innovation can reduce dependencies, and how Europe should manage escalation risks if it adopts a tougher approach towards China.
With insights from Marcel Halma (Solvay), Yannick Treige (ASML), Jasper van Zon (Nyrstar), the industry panel, moderated by Camille Boullenois (Rhodium Group), focused on how public-private sector cooperation can make supply chains more resilient. A recurring theme was that Europe has long been aware of the risks but has moved too slowly.
The diagnosis is stark, but the challenge is clear. The next step is turning awareness into action.
