The EU relies too much on Chinese raw materials
23:45
In the first half of 2020, the availability of raw materials began to decline as a result of the pandemic. The scale of the problem, however, was invisible until the economy recovered, especially the rebound in production levels in Asia after the crisis.
According to the Polish Economic Institute (PIE), a public economic think tank, significantly reduced imports of metals, semiconductors, and plastics are due to shortages and delays in deliveries. The situation is not improved by limited transport capacity.
Shortages of raw materials and semi-finished products are a big obstacle for industrial enterprises. This was admitted by almost one-fifth of companies from this sector in the economic situation survey conducted by the Central Statistical Office (GUS).
The reasons for this state of affairs and the high prices of raw materials should be seen in the dependence on Chinese supplies of many of the most needed raw materials. China is responsible for almost half (45 percent) of the global production of 30 raw materials considered critical for strategic sectors of the European Union economy. In some cases, however, this share is even higher. As much as 87 percent of global magnesium production and 95 percent of supplies of this raw material to the EU come from China.
