Dutch Minister of Trade: European Green Transition is Impossible Without China

Dutch Minister for Foreign Trade and Development Cooperation Elisabeth ‘Liesje’ Schreinemacher believes that the green transition in Europe will be impossible without China as long as the European Union does not resolve part of its economic dependence on Asian energy sources.

The West currently finds itself in an unenviable position as it seeks to increase domestic demand for clean energy and transition to electric vehicles, an area currently dominated by companies based in China.

While the U.S. has decided to completely distance itself from China, Europe has so far acted with more caution as its economy is more dependent on Asia, which can also be seen due to the difficult situation that arose when punishing Russia for its invasion of Ukraine.

– They are doing an exceptional amount of work in research and development, and it would really be a shame to completely separate ourselves from China – Schreinemacher told the Financial Times, adding that the Netherlands has ‘strong trade relations with China’ and that ‘we need each other when it comes to the sustainability of our economies and the green transition.’

G7 leaders agreed last week to ‘reduce the risk’ of their relations with China by seeking to import more raw materials from other sources and build their own clean technology industry.

The Dutch minister plans to visit China by the end of the year, and as she said, reducing strategic dependence does not mean that we should completely stop trade, at least until we ‘diversify our sources and our value chains.’

The European Union presented its plans for more domestic mining and processing of critical materials back in March, and next month, European Commission President Ursula von der Leyen is expected to present an economic security strategy, despite concerns in some member states that the bloc is moving in a protectionist direction.

China controls nearly every global supply chain for solar energy and a large part of the global processing capacity for minerals that are key to the green transition.

They Want Brussels to Support Measures Against China

Schreinemacher believes that the European Union should think carefully before reviewing European investments in Chinese technology, which G7 leaders discussed earlier this month. She described the so-called ‘screening of outbound investments’ as a ‘very difficult instrument’ used to protect the bloc’s economic interests.

– I think it is very important that we know exactly what the goal is and how to implement it – she stated.

She also emphasized that the powers for economic security remain in the hands of national governments, although Washington is pressuring Europe to join their restrictions on trade relations with China.

U.S. and EU officials, including Secretary of State Antony Blinken, will discuss the review of outbound investments and coordinated export controls at a meeting on May 31, the Financial Times reports.

The discussions will aim to increase ‘understanding of the policy tools available to address national security risks in a holistic manner,’ the text states.

Let us recall that The Hague and Tokyo joined Washington in banning the export of the most sensitive technology for silicon chip production to China, especially as Beijing has intensified pressure on Taiwan, the global center for semiconductor production.

The Dutch government announced that the most advanced chip manufacturing machines will require an export license, without specifying which models are involved. Schreinemacher said that more details will be provided ‘by summer.’

All of this has impacted Dutch ASML, the only manufacturer of advanced machines in the EU, but Schreinemacher wants Brussels to support measures so that other member states can follow suit and promise not to re-export equipment produced in the Netherlands.

– This would be more of a sign of support for these measures – she explained.

Although China retaliated against the U.S. by banning the use of chips produced by Micron in infrastructure projects, Schreinemacher refuses to speculate on whether Dutch companies could face similar action after Beijing threatened retaliation.