Germany’s Diplomatic Row with China Over Semiconductor and Rare-Earth Disputes
German Foreign Minister Johann Wadephul has canceled his planned visit to Beijing after the Chinese government reportedly failed to arrange sufficient high-level meetings. The canceled trip was intended to address disputes over China’s export restrictions on rare-earth elements and semiconductors, as well as the ongoing Ukraine conflict. A spokesperson for Germany’s Federal Foreign Office confirmed that the trip cannot proceed at this time and will be postponed. Instead of the in-person meetings, Wadephul and Chinese Foreign Minister Wang Yi will reportedly hold a telephone conversation. The cancellation comes amid escalating trade tensions between China and the European Union, which have been marked by disputes over industrial overproduction and protectionism.
Earlier this month, China tightened export restrictions on strategic minerals with dual-use applications, impacting Europe’s automotive sector, particularly in Germany. Volkswagen, a key German automaker, is facing production halts due to semiconductor shortages, exacerbated by the Dutch government’s seizure of Chinese-owned chipmaker Nexperia. Germany has formally protested China’s export bans, citing its reliance on Chinese components, highlighting the deepening economic and diplomatic rift between the two powers.
The decision to cancel Wadephul’s visit reflects the increasing complexity of diplomatic relations between the EU and China. The EU has been pushing back against China’s industrial overproduction policies, while China accuses the bloc of protectionism. This trade rivalry has been amplified by recent geopolitical developments, including the conflict in Ukraine, where both sides have sought to leverage economic leverage for political gains.
Analysts warn that the semiconductor shortage, worsened by the Nexperia seizure, could have far-reaching consequences for the European automotive industry. With many European automakers heavily dependent on Chinese components, the disruption in supply chains is a significant vulnerability. The Volkswagen case exemplifies the broader risk, with reports indicating that more plants could face temporary shutdowns. This situation has prompted Germany’s Economy Minister Katherina Reiche to formally lodge a diplomatic protest against Beijing, underscoring the gravity of the issue for the German economy and its broader European allies.
The unresolved tensions between the EU and China are set to intensify in the coming months as both sides continue to navigate their complex relationship. With strategic minerals and semiconductors at the heart of the dispute, the implications for global supply chains and international trade are significant.