WINGTECH(SH:600745) Sou Hu Cai Jing·2025-10-23 18:07Core Points - The European Union (EU) is facing a contradictory diplomatic situation, needing China's rare earth resources for its green transition and high-end manufacturing while simultaneously attempting to suppress Chinese companies in the security domain [1] - The EU's foreign policy exhibits a confusing dual standard, as evidenced by recent events involving rare earth exports and the ASML semiconductor incident [5][9] Group 1: Rare Earth Dependency - Rare earth elements are critical for high-tech products such as electric vehicles, wind turbines, and semiconductors, with China holding approximately 37% of global rare earth reserves and over 90% of processing capacity [6] - The EU relies on China for 98% of its rare earth needs, with its own mining contributing less than 1% of global supply and virtually no refining capabilities [6] - The EU's recent announcement of new export restrictions on rare earth elements by China has led to significant delays in approval for around 2,000 applications from EU companies, with only about half receiving approval [8] Group 2: Semiconductor Industry Impact - The ASML semiconductor incident highlights the EU's contradictory approach, as the Dutch government forcibly took control of ASML, a company previously owned by a Chinese firm, leading to Chinese export restrictions on semiconductor products [8][15] - The semiconductor chips produced by ASML are essential for automotive electronic systems, and major manufacturers like BMW and Volkswagen are already experiencing supply shortages [8][15] - The EU's dual standards in handling the ASML situation have resulted in significant pressure on its automotive industry, which is a key sector of the European economy [15] Group 3: Strategic Responses and Challenges - In response to the rare earth supply crisis, the EU has introduced the Critical Raw Materials Act, aiming for 10% of metal consumption to come from European sources by 2030, but faces significant technical and environmental challenges [12] - The EU's attempts to establish an independent rare earth supply chain could take 20 to 30 years, during which it will remain reliant on Chinese supplies [12] - China's response to the EU's dual standards includes emphasizing lawful export controls while providing a "green channel" for EU companies, indicating a balanced approach to cooperation [13]