Trade Commissioner Maroš Šefčović told Euronews in an exclusive interview that all critical strategic materials could be used as a weapon against the European Union.
The EU is dealing with the fallout from the Dutch government’s takeover of chip specialist Nexperia on national security grounds. The move from The Hague sparked a clash between Europe and China over who would control the company and its final products, resulting in restrictions on chip exports by China.
Šefčović, an experienced politician who handles a vital trade portfolio for the EU, said the episode highlights the complexity of global supply chains and the risks associated with significant dependencies on third countries outside the EU.
“This very much underlines the lessons we have learned over the past years, and this is not just about China. Today everything can be weaponized,” Šefčović told Euronews. For Europe, he argued, “It started with (Russian) gas, followed by critical raw materials and high-end and low-end chips, all of which can be weaponized.”
Mr Šefčović has been in contact with authorities in China and the Netherlands since the altercation began more than a month ago. The Dutch government took control of Nexperia on September 30, fearing that the company would be broken up and moved to China. The Dutch were concerned that the move could also involve the transfer of sensitive technology.
China responded by blocking chip exports from China, raising concerns in Europe and around the world about a possible global shortage of automotive chips.
The impasse eased on October 30 after China and the United States met in South Korea and both sides agreed to a truce in their bilateral trade dispute.
“China is taking appropriate steps to ensure that trade resumes from Nexperia’s facilities in China so that critical chip production can flow to other parts of the world,” the White House statement said.
Šefčović suggested that a partial recovery in exports marked the beginning of a resolution to the conflict, but reiterated that the fiasco was a warning of the urgent need to diversify.
“We have received information from car manufacturers to spare parts manufacturers that they are getting these chips,” he told Euronews. “However, we are only at the beginning of resolving this issue and will continue our discussions with our Dutch colleagues and the Chinese authorities.”
Vincent Kallemans, the Dutch envoy at the center of the storm with China, said in an interview that he would do it the same way again, suggesting the incident was a warning about the great dependence Europe has built over the years.
EU preparing new principles for economic security
The Nexperia case is the latest case between China and the EU over the supply of strategic parts used in everything from automobiles to defense.
It also highlights how these materials have become political tools for exerting pressure through economic coercion. After weeks of tensions that affected European industry, the EU has reached a deal with China that eases some rare earth export restrictions.
The European Commission is working on a plan to be submitted next month to address some of these weaknesses. Šefčović said the global race to secure rare earths and critical components and ensure stable supply chains requires a unified approach.
“We need to do a little bit more like Japan, which has stockpiled some of the key raw materials, key technology and key chips,” Šefčović said.
“I think this will be one of the lessons that we want to incorporate into the new economic security principles that we will put forward by the end of the year,” he said.
The EU is actively pursuing policies to reduce risks, but not to decouple from China. This would leave the door to trade open, but would apply safeguards in key areas deemed strategic to the EU and close loopholes to the single market.
“Economic security and effective export controls will only work if they are applied in homogeneous harmony throughout the EU,” Šefčović said, adding: “Those who seek to exploit the system will always find weaknesses and penetrate the European market, thereby endangering the entire European economy.”