Beijing has called off a planned trip by the European Union’s top diplomat Josep Borrell amid the bloc’s criticism of China’s recent export restrictions on two key chipmaking metals.
“Unfortunately, we were informed by the Chinese counterparts that the envisaged dates next week are no longer possible and we must now look for alternatives,” EU spokesperson Nabila Massrali said on Tuesday.
A spokesman for China’s foreign ministry declined to give a reason for the cancellation, which follows Europe’s efforts to diversify its chip supply chains and plans to stop its prized technology from being used by Beijing.
Also on AF: Curbs on Chipmaking Metals ‘Just The Beginning’, China Warns
However, he did not write off hopes of another attempt at a visit.
“We welcome High Level Representative Borrell to visit China at the earliest time convenient to both sides,” Foreign Ministry spokesperson Wang Wenbin told reporters at a daily briefing in Beijing on Wednesday.
“We are willing to maintain communication with the EU about this.”
Borrell was due to visit Beijing on July 10 to meet his Chinese counterpart and discuss “strategic issues” including human rights and Russia’s war in Ukraine, the EU’s ambassador to China said on Sunday.
Ambassador Jorge Toledo had told the World Peace Forum in Beijing on Sunday that China and Europe are likely to hold two in-person dialogues in September, one on the economy and trade and another on digital matters, before a leaders’ summit at the end of the year.
“We want to engage with China but we need progress and we need it this year,” Toledo said.
This is the second time this year that Borrell’s trip was cancelled. He could not come in April after testing positive for Covid-19.
China should ‘clear security considerations’
Europe has been seeking to reduce risks created by its close economic relationship with China. Brussels has dubbed the world’s second-largest economy an “economic competitor and a systemic rival”.
On Tuesday, the European Commission voiced concerns over China’s planned curbs on exports of over a dozen gallium and germanium products over national security concerns.
The bloc expressed doubts that the move was related to security.
“The Commission is concerned that these export restrictions are unrelated to the need to protect global peace and also stability and the implementation of China’s non-proliferation obligations arising from international treaties,” a Commission spokesperson told a daily briefing.
The EU executive, which is assessing the potential impact on global supply chains and European industry, said it called on China to limit export restrictions to “clear security considerations” in line with World Trade Organization rules.
The Commission has identified both rare elements as “strategic” raw materials for its green and digital transition, with 2030 targets for increased EU mining, recycling and processing.
Gallium and germanium are both key for manufacturing semiconductors and electric vehicles and are widely used in high-tech industries.
Netherlands calls on EU to respond
The Dutch government, which on Friday announced fresh restrictions on exports of chipmaking equipment, urged the EU to respond to China’s new rules.
“To what extent this will have consequences for the European and Dutch economy will depend on how China carries it out,” the Dutch Foreign Ministry said in a statement.
“Given the authority that the European Union has in trade policy, it’s primarily up to the EU to address China about these measures.”
The Dutch foreign minister will “keep in close contact with the European Commission and other EU member states about this,” the statement said.
Netherlands, home to key chip equipment-maker ASML, agreed last year to join efforts by the United States to hobble China’s semiconductor industry.
Its rules last week, requiring firms to apply for licences to export chipmaking equipment, are widely seen as a step targeting China. The Hague has denied, however, that its rules intended to target any one country.
- Reuters, with additional editing by Vishakha Saxena
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