German industry chief claims EU possibly to become ‘province of China’
(MENAFN) The European Union’s heavy dependence on Chinese raw materials could severely weaken its industrial sector, potentially reducing it to the status of a "province of China," warned Stefan Scherer, CEO of AMG Lithium, in an interview with The Guardian on Wednesday.
Scherer emphasized that Europe must urgently reduce its reliance on China, which currently refines about 60% of the world’s lithium and leads in global battery component manufacturing—critical for electric vehicle production. Speaking from AMG Lithium’s site in Bitterfeld-Wolfen, Germany, he argued that without temporary protective measures, EU industries will continue to lose ground to China.
Despite European Commission President Ursula von der Leyen’s efforts to boost domestic production and reduce strategic dependency, Scherer noted that European markets remain saturated with lower-cost Chinese goods, including steel and battery systems.
“We’re really at a tipping point,” he said, warning that without action, the EU might as well apply to become a Chinese province. He added that the threat is unrelated to the Ukraine conflict and stems from a fundamental shift in global trade dynamics.
Von der Leyen has previously raised similar concerns, accusing China of unfair market practices that contribute to Europe’s de-industrialization. However, Beijing has rejected such claims, calling them unfounded.
Scherer also voiced concern about worsening trade tensions between the EU and the US, which could further damage Germany’s already fragile automotive sector. With the July 9 deadline for a new trade agreement looming, Washington may impose tariffs of up to 50% on EU goods. European negotiators are hoping to mitigate these measures, which include a 25% duty on cars and 50% on steel and aluminum.
The German Economic Institute warns that if the proposed US tariffs take full effect, Germany could lose as much as €200 billion ($236 billion) by 2028.
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