O.
whereas, in particular, China has dramatically expanded its industrial capacity in
strategic green and transport sectors, becoming the world’s leading producer of solar
panels, a dominant global actor in wind turbine manufacturing, and a major exporter of
high-speed rail technology; whereas overdependence on Chinese technologies and
resources in the area of climate change prevention and the green transition renders the
EU and its partner countries vulnerable;
P.
whereas the EU needs to diversify its supply chains, boost domestic processing capacity
and significantly increase its recycling and reuse of critical raw materials; whereas
Chinese critical raw materials account for 98 % of all rare earth elements imported by
the EU; whereas China holds a virtual monopoly on the production of rare earths,
accounting for approximately 60 % of global extraction and 90 % of refining, and on
the production of permanent magnets, accounting for 94 % of global capacity, and
benefits from a fully vertically integrated supply chain in these sectors; whereas
restrictive measures such as export controls on critical raw materials are a direct threat
to the European economy, especially the automotive, machinery and defence sectors;
whereas China has the largest industrial fishing fleet in the world and, out of the 152
countries examined in 2023 by the IUU Fishing Risk Index, China was the lowestoverall-scoring coastal state for illegal, unreported and unregulated (IUU) fishing
practices;
Q.
whereas the EU should pursue an autonomous, interest-based approach that safeguards
European economic security and strategic sovereignty; whereas the EU has a
considerable trade toolbox it could proactively and assertively use to address the
unbalanced EU-China trade relationship; whereas the EU should also work more closely
with like-minded partners, such as Canada, Japan, Australia, New Zealand, India,
Mexico, South Korea, the Philippines and the United States;
R.
whereas China’s assertive geopolitical, technological, and economic policies, including
its Belt and Road Initiative, can sometimes run counter to the rules-based international
order and international governance models, as well as the EU’s core values, global
partnerships and geopolitical interests;
S.
whereas the EU is the world’s largest aid donor and China the world’s largest
international development lender; whereas China’s overseas lending has funded major
infrastructure projects in developing countries without, however, reducing their debt
burdens, and in some cases even aggravating them;
T.
whereas, in particular, through a combination of state-directed investment, strategic
infrastructure acquisition, technology transfer, influence operations and long-term debt
exposure, China seeks to expand its footprint within the EU and the EU’s
neighbourhood and exploit governance vulnerabilities, economic pressures and
institutional weaknesses; whereas this affects transparency, democratic standards and
the EU’s capacity to promote stability, convergence and rule-of-law reforms in its
neighbourhood;
U.
whereas, specifically, China views the Western Balkans as a strategic area for its Belt
and Road Initiative, investing in their extractive and raw materials sectors; whereas
China’s investments in Central Asia and in the South Caucasus establish a physical
continuum between Asia and Europe, and present both risks and opportunities for the
EU’s engagement with regional partners;
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