Kathrine Frich
The European Union only introduced a basic screening mechanism in 2019.
Shopping for everyday electronics used to feel like an endless bargain.
But those low prices hid a massive geopolitical shift that is only now coming to light.
The factory of the world quietly became its biggest rival.
A complete monopoly
Europe relies heavily on Asian imports for its most critical industries. According to Onet, this dependence is staggering when you look at the raw numbers.
China controls nearly 100 percent of the heavy rare-earth metals needed to build electric vehicles and massive wind turbines. They also supply about 97 percent of the magnesium required by European factories.
The problem goes beyond raw materials. Konrad Szatters, an analyst at the Association for International Affairs, explained that European appliance and car makers heavily depend on older Chinese semiconductors known as legacy chips.
The big mistake
Western leaders initially assumed that strict political systems could not innovate. They believed that Europe would invent the technology while Asian factories simply assembled the parts.
Trade boomed for decades under that exact assumption. “Western consumers were getting cheap products, companies were achieving high margins, and China was growing its economy,” Szatters noted in the Onet interview.
Everyone seemed happy with the arrangement. “The problem was that China did something many Western experts hadn’t expected. And it was a huge shock,” the expert stated.
Instead of just building things, Chinese companies developed their own advanced tech. They are now actively pushing European businesses out of both foreign and domestic markets.
Slow to wake up
The United States established rules to block risky foreign investments decades ago. By contrast, the European Union only introduced a basic screening mechanism in 2019.
European bureaucracy moves at a crawl. While global rivals make overnight decisions, Brussels spends months negotiating complex documents across its member states.
Deep business ties make quick action even harder. Back in 2024, German car manufacturers pushed their political leaders to oppose new tariffs on Chinese electric vehicles.
Finding common ground
Despite the delays, European officials are finally trying to catch up. They are rolling out new anti-subsidy rules and updating the Chips Act to rebuild local semiconductor manufacturing.
Szatters remains somewhat optimistic about the future. He pointed out how quickly the continent mobilized when the war broke out in Ukraine.
The analyst believes that a similar united front is entirely possible. Europe still commands a massive consumer market, and that financial power gives leaders real leverage to negotiate better terms.
Sources: Onet
