China abruptly cancels planned Beijing visit of key European Union diplomat

High Representative for Foreign Affairs Josep Borrell’s planned visit to China has been unexpectedly canceled, without any specific reason provided. Borrell was initially scheduled to visit Beijing in April for the annual EU-China strategic dialogue with Chinese Foreign Minister Qin Gang, but the trip was postponed after Borrell tested positive for Covid-19. The new dates of July 10-11 were arranged, but now it seems an alternative will have to be found. The canceled visit was set to cover discussions on various topics, including human rights and Russia’s war in Ukraine. Chinese foreign ministry spokesperson Wang Wenbin declined to offer a reason for the cancellation, but expressed China’s continued openness to hosting Borrell in the future. The cancellation coincides with the upcoming visit to Beijing by U.S. Treasury Secretary Janet Yellen.

Furthermore, China recently announced export restrictions on germanium and gallium, metals crucial to semiconductor and electronics manufacturing with applications ranging from military equipment to mobile phones. This move has led to higher prices for these metals and has caused companies to scramble to secure their supplies. The U.S. has increasingly employed export restrictions and trade blacklists against China to curb its technological growth. Former Chinese Vice Commerce Minister Wei Jianguo believes these recent measures are just the beginning, and if high-tech restrictions on China become more severe in the future, China will escalate its countermeasures. Rebecca Harding, a trade and political risk specialist, suggests that these export controls are aimed at weaponizing the rare earth and critical minerals supply chain. However, she believes the impact of these controls will be relatively limited, as they may trigger a mutually assured destruction scenario where both sides suffer due to disrupted supply chains. Additionally, Harding notes that these measures are likely retaliatory not only to the United States but also to the Netherlands, a major semiconductor machinery hub that recently imposed export restrictions on advanced semiconductor equipment. It seems unlikely that there will be any immediate reversal of these measures.