The EU and the US have also signed a declaration in which they recognize their "shared concern about non-market economic policies and practices that may lead to distorting effects or excessive dependencies on so-called 'legacy' chips", of which China has close to one third of global manufacturing capacity.
The European Union and the United States will lead the new Mineral Security Partnership (MSP) Forum, a new platform for cooperation in the area of raw materials essential for green and digital transitions to compete with China's semiconductor production capacity. The EU and the US are "concerned" about practices outside the market and their possible "distorting effects."
The forum, which was launched this Friday within the framework of the EU-US Trade Security Council, will bring together resource-rich countries and nations with high demand for these resources. As a sign of strong transatlantic cooperation, it will be co-chaired by the EU and the US, although it also brings together other recent partners like Kazakhstan, Namibia, Ukraine and Uzbekistan.
Membership in the forum will be open to partners willing to commit to its key principles, including diversification of global supply chains and high environmental standards, good governance and fair working conditions.
The economic vice-president of the Commission and Commissioner for Trade, Valdis Dombrovskis, highlighted that this new forum is a "cornerstone" of the EU's strategy to guarantee a supply of essential raw materials.
"It will be key to reducing our vulnerabilities and achieving the green and digital transition, both in Europe and beyond. With this global initiative, we want to ensure that international cooperation is up to par to increase investment, diversify supply chains and bring sustainable benefits to all parties," said the Latvian politician.
Within the framework of this Friday's meeting, the EU and the US have also signed a declaration in which they recognize their "shared concern about economic policies and practices outside the market that can cause distorting effects or excessive dependencies for the so-called 'legacy' chips", of which China has about a third of the world's manufacturing capacity.
"They are the most used semiconductor chips. They are in cars, in this microphone, in all household appliances, in medical devices, in all pacemakers, in everything," explained the United States Secretary of Commerce, Gina Raimondo.
Raimondo has specified that, according to China's own reports, around 60% of all new legacy chips that will come to market in the coming years will be produced by China.
"We know that the Chinese government massively subsidizes this industry, which could greatly distort the market. And that's why we focus on it," Raimondo said.
The Commerce Department has already launched a study to assess market distortion, and the EU will follow suit shortly.
"We intend, as appropriate, to continue to collect and share non-confidential information and market intelligence on non-market policies and practices, we commit to consult each other on planned actions and may develop joint or cooperative measures to address the effects distortions in the global semiconductor supply chain," reads the declaration signed this Friday by the transatlantic partners.
The two partners have also committed to join forces in search for alternatives to perfluoroalkyl substances, or PFAS. These "forever chemicals" do not break down easily and studies show they can be harmful to human health.
