- Global competition over trade and lunar resources
- Chinese authorities required permission for rare earth exports, leading to shortages, tariffs, and trade tensions affecting global supply chains.
- EU trade policy impacts China-EU bilateral partnership, with actions suspected of violating WTO rules.
- Risk of trade war due to rising Chinese exports, involving executive bodies and trade policy initiatives.
EU Launches €21bn Strategy to Secure Critical Raw Materials Amid Trade Tensions with China
- Reports
- 3
- Developments
- 2
- Repetition
- 33%
New informationRepeats or wire copies
What happened
The European Commission announced support for 46 strategic projects, totaling €21bn, aimed at accelerating the supply of critical raw materials by 2030. These projects include plants for lithium, gallium, and rare earths needed for the auto, defense, and renewable energy industries. Concurrently, trade commissioner Maroš Šefčovič continued talks in Beijing to reduce China’s trade surplus with the bloc.
From theguardian.com
Why it matters
The EU is preparing for potential trade tensions that could trigger a crisis in several sectors. This effort occurs while high energy prices continue to put pressure on households and industries, with oil remaining above $100 per barrel and gas trading at its highest level since winter 2022.
The risk of a trade war is rising due to increasing Chinese exports, impacting the China-EU bilateral partnership.
From euronews.com, theguardian.com
Who's involved
- European CommissionLeading efforts to avert a trade war and backing strategic projects for critical raw materials.
- BeijingLocation of ongoing trade negotiations with the European Commission regarding trade deficits.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- European Investment BankSpeculative
The European Investment Bank could see increased funding for the 46 strategic projects aimed at securing raw materials.
- NvidiaSpeculative
Nvidia might face increased regulatory risk and market access hurdles due to EU trade pressure on Beijing.
- SpainSpeculative
Spain could be affected by regulatory action via proposals for an EU-wide windfall tax on energy companies.
Possible ripples
Who this could reach next, traced step by step from the reporting. Possibilities worth considering, not forecasts.- EIB may boost funding for critical raw materials projectsEIB may boost funding for critical raw materials projectsLikely
- EU trade pressure on China may raise regulatory risk for NvidiaIncreased EU trade pressure on China may raise regulatory risk for NvidiaPossible
- National Council may legislate EU windfall tax amid trade tensionsNational Council may face pressure to legislate proposed EU windfall taxPossible
- How could the EU's efforts to manage trade tensions affect the finance ministry?EU's trade crisis backdrop fuels debate over new fiscal taxesPossible
How it developed
Newest first. Tap a step to see who reported it.Austria proposed an EU windfall tax while Brussels set a deadline for Beijing during an EU summit.1 source
EC is actively working to prevent a trade war with China.1 source
Keep exploring
The entities involved
-
European Commission
executive branch of the European Union
-
Beijing
capital city of China
Related events
- The European Commission is leading the push for trade policy shifts, imposing harsher trade measures against China.
- EU leaders instructed the Commission to develop new tools to counter China-related economic imbalances.
- The European Commission secured an agreement to limit hybrid car imports as part of efforts to address the trade deficit with China.
- Trade Commissioner visited Beijing as WTO sanctioned investigation into Chinese subsidies and trade deficit reached one billion euros daily.
- China leverages the perceived faltering of the US and the internal divisions within Europe.