The European Union has published a critical raw materials security strategy identifying 34 materials where dependence on Chinese suppliers creates unacceptable strategic risk. The list includes lithium, cobalt, rare earth elements, and processed solar panels. Member states are being required for the first time to map their supply chain dependencies and develop mitigation plans with specific timelines.
The strategy is generating friction with Beijing, which views the supply chain diversification effort as economic decoupling disguised as security policy. European companies with significant China operations are caught between political pressure to diversify and the practical reality that Chinese manufacturing in many categories offers cost advantages that alternative sources cannot match in the near term.
