2025
Jorge Fernández Gómez, Macarena Larrea Basterra, Jaime Menéndez Sánchez & Stephanía Mosquera-López
https://doi.org/10.1007/978-981-97-5640-7_13
The Palgrave Handbook on China-Europa-Africa Relations pp 271-300. Palgrave Macmillan, Singapure
Abstract
Critical raw materials (CRM) are essential for the success of the twin green and digital transitions worldwide. While every country will require access to CRM supply for achieving decarbonization targets, only a few of them (particularly, China) are home to or control the main global mining deposits or mineral refining capacities. This constitutes a serious hazard for countries that lack clear access to CRM supplies and, consequently, are developing risk mitigation strategies to avoid the costly impact of CRM shortages. An example of this is the European Union (EU), which in 2022 announced a Critical Raw Materials Act, a proposal of which was presented in March 2023, that builds on former EU policies on this topic. Assessing the response of the EU to the high dependency on imports from China of certain CRM that are strategic for the twin transition is crucial to reduce the geopolitical vulnerability of the EU. Moreover, with the expected increase in demand for many of these CRM as Europe moves forward in its decarbonization goals, the dependence on China could even increase in the future. This chapter aims to answer the following research question: how is the EU responding to the increasing risks related to CRM supply and, particularly, to China’s dominant position in most of the associated value chains? Based on the literature on criticality assessment and mitigation strategies for supply risk and the economic impact of supply disruptions, we construct an analytical framework to evaluate the four main pillars initially proposed by the CRM Act, namely, focus on strategic applications; strengthening the supply chain; anticipation through collaboration; and developing a sustainable, level playing field. Lastly, in the light of this evaluation, we discuss the potential implications of the CRM Act for EU-China relations and suggest that a coopetition, rather than competition, approach could better help to materialize opportunities embedded in the common need to move forward with the global energy transition.
