[{"bbox": [96, 152, 1134, 313], "category": "Text", "text": "This Action will support systematic monitoring of Chinese global investments and operations through an observatory (i.e. a pool of experts) on critical raw materials (as defined in the proposed Critical Raw Materials Act (CRMA))², their refining and downstream processing. By providing evidence-based analysis on global Chinese activities related to critical raw materials (e.g. investment flows and stocks, companies and sectors involved, relations with host countries, downstream uses of these raw materials), the observatory contributes towards EU policies to mitigate strategic dependencies of the Union and its Member States."}, {"bbox": [96, 323, 1134, 406], "category": "Text", "text": "The Action will support the EU and its Member States to get a long-term overview of Chinese overseas investments in critical raw materials, their location, cooperation partners, modus operandi, challenges, etc, and provide regular inputs and analysis for relevant EU policies, such as trade, industrial policies and international partnerships."}, {"bbox": [96, 416, 1134, 630], "category": "Text", "text": "The observatory will collect and analyse information on China's global activities in critical raw materials (in the EU, third countries, as well as the Arctic/Antarctic and on the high seas) from publicly available sources and, where relevant and feasible, from EU Delegations as well as other diplomatic or commercial sources. The data/information will include, for instance, investment flows and stocks, companies and sectors involved, relations with host countries, downstream processing of such raw materials in China or elsewhere. The observatory will gather relevant existing articles and papers by third parties which will be made available in an electronic repository. The repository will not be made publicly available. In addition, the observatory experts will regularly produce new analytical reports for presentation to EU stakeholders."}, {"bbox": [96, 640, 1134, 802], "category": "Text", "text": "Currently a baseline study, financed by the European Commission's service for Foreign Policy Instruments (FPI), is conducted on 'Chinas's overseas investments in critical raw materials' (expected to be completed by the end of 2024). The purpose of this study is to provide a first comprehensive overview of China's overseas investments in critical raw materials, identifying the main trends of these investments since 2011 and their implications for the EU. The baseline study should provide a first overview of this issue and, thus, facilitate the development of the observatory which will be supported under this new Action."}, {"bbox": [86, 827, 506, 858], "category": "Section-header", "text": "## 1.3 Zone benefitting from the Action"}, {"bbox": [86, 872, 1061, 900], "category": "Text", "text": "The Action shall be carried out in the European Union Member States and the People's Republic of China."}, {"bbox": [86, 926, 322, 959], "category": "Section-header", "text": "# 2 RATIONALE"}, {"bbox": [86, 992, 234, 1020], "category": "Section-header", "text": "## 2.1 Context"}, {"bbox": [96, 1050, 1134, 1186], "category": "Text", "text": "On 20 June 2023, the European Commission and the High Representative published a Joint Communication on a European Economic Security Strategy³, to minimise the risks to economic security in the context of increased geopolitical tensions and accelerated technological shifts, while preserving maximum levels of economic openness and dynamism. On 24 January 2024 the European Commission adopted a package of 5 new initiatives (related to trade and research) as part of the roll-out of the European Economic Security Strategy of 20 June 2023⁴."}, {"bbox": [96, 1195, 1134, 1304], "category": "Text", "text": "The European Council Conclusions of 30 June 2023 on China⁵ reaffirmed, along with the Foreign Affairs Council of October 2022 and the “EU-China Strategic Outlook - Joint Communication” of March 2019, the validity of the EU’s multifaceted policy approach towards China, where it is simultaneously a partner, a competitor and a systemic rival."}, {"bbox": [96, 1314, 1134, 1475], "category": "Text", "text": "This approach has served to address the different aspects of the relationship, through a period when economic and political relations have required flexibility and agility in bilateral dealings with China. It also kept open the space for bilateral engagement on matters of common or global interest. In recent years, bilateral relations have become more complex in the face of sanctions, economic coercion against Lithuania, heightened tensions across the Taiwan Strait and China's positioning on Russia's war against Ukraine. Continuing to consolidate unity across all aspects of the relationship remains crucial for the EU's capacity to maintain credibility and leverage. At the same"}, {"bbox": [86, 1525, 886, 1573], "category": "Footnote", "text": "²https://ec.europa.eu/commission/presscorner/detail/en/ip_23_1661\nhttps://single-market-economy.ec.europa.eu/publications/european-critical-raw-materials-act_en"}, {"bbox": [86, 1573, 652, 1599], "category": "Footnote", "text": "³https://ec.europa.eu/commission/presscorner/detail/en/IP_23_3358"}, {"bbox": [86, 1599, 643, 1622], "category": "Footnote", "text": "⁴https://ec.europa.eu/commission/presscorner/detail/en/IP_24_363"}, {"bbox": [86, 1622, 692, 1646], "category": "Footnote", "text": "⁵https://data.consilium.europa.eu/doc/document/ST-7-2023-INIT/en/pdf"}, {"bbox": [1038, 1681, 1144, 1707], "category": "Page-footer", "text": "Page 4 of 17"}]