Renault Chairman Jean-Dominique Senard expressed concern over the risk of China severing raw material supplies to Europe. In an interview with Bloomberg, he highlighted the European Union’s lack of assessment regarding its dependence on Chinese metals, emphasizing the significance of this vulnerability.
Senard specifically mentioned China’s recent export restrictions on gallium and germanium, crucial elements in semiconductor production. The imposition of these restrictions has sparked apprehension about the global semiconductor shortage, with Senard warning of a potential “severe impact” on the European automotive industry.
The European Union has been striving to reduce its reliance on China for critical raw materials. Setting a target of securing 80% of its critical raw material needs by 2030, the EU aims to enhance its self-sufficiency. However, Senard expressed skepticism, deeming this goal “very ambitious” and acknowledging the challenges associated with achieving it.
The EU’s considerable dependence on China for critical raw materials poses a significant security risk. Any disruption in supplies from China could result in severe consequences for European industries. Senard’s remarks underline the urgent need for the EU to take proactive measures in decreasing its dependence on China for these essential materials.
Here are some additional details about the China-EU relationship in the context of raw materials:
- China is the world’s largest producer of many critical raw materials, including rare earths, cobalt, and lithium.
- The EU is a major consumer of these materials, and it is increasingly reliant on China for their supply.
- This reliance has raised concerns about the EU’s security and economic resilience.
- The EU has taken some steps to reduce its reliance on China, but it has a long way to go.
