Hotspot Engine Plan "The EU's ** Chain Law Fails Again", German TV said on the 29th that the EU imitated the ** Chain Law formulated by the United States, aiming to prevent so-called companies from using child labor or forced labor for profit, but in fact it wants to crack down on "Made in China". But the EU countries are not buying it, and most countries give von der Leyen a "no" to this important project. Even von der Leyen's homeland, Germany, abstained. This means that it is unclear whether the project will need to be renegotiated again. 
The EU-US talks were abstained from voting by the German federal federation after one of Germany's ruling parties, the FDP, blocked ratification. This seems to be a no-no. The Liberals fear that businesses will pull out of Europe because of bureaucratic and legal risks. Politicians from the coalition SPD and the Greens supported the project. These differences have led to open attacks within the "traffic light coalition".
*The chain directive vote was postponed again to show that criticism of the directive was well-founded. Carl Cronenberg, spokesman for SME policy in the Bundestag and FDP parliamentary group, said. The EU's requirements go far beyond the national chain law that Germany has already introduced, and imply additional bureaucracy. In some respects, the draft goes beyond the ** chain law, which has been in force in Germany since last year. At the EU level, for example, companies are held liable for breaches of certain obligations, which is excluded by German law.
The German newspaper Die Welt, in addition to Germany, many member states believe that the directive cannot be ratified. Italy, Cyprus and Bulgaria were said to be particularly concerned, while Sweden, Finland and Estonia also reiterated their concerns and called for special provisions and exceptions.
There are also doubts about whether the law will be passed before Europe** in early June. The vote in Italy, Europe's third-largest economy, could be crucial. Unlike Germany and France, Italy has not yet developed a national chain law. Observers believe that Italy is following Germany's lead. Without Italy's consent, it may not be enough to obtain a qualified majority.
The disagreement between Germany's ruling three parties "dealt a heavy blow to von der Leyen", and the German newspaper Die Welt commented that one of the most important projects of European Commission President Ursula von der Leyen is now on the verge of extinction. Daniel Kasparry, a member of the CDU European parliamentarian in Germany, said: "It is good news that the European chain law has failed again in the Council. Anna Carvazini, a member of the European Parliament from Germany's Green Party, said that the debate between member states in the Council over the EU's first chain law was "a tragedy".
The bill introduced by von der Leyen is modeled after Biden**'s UFLPA law implemented on June 1, 2022, and is also alleged to target goods imported from Xinjiang. UFLPA law prohibits the importation into the United States of America, in whole or in part, of products manufactured in whole or in part. In fact, the UFLPA aims to economically isolate the region by forcing all companies around the globe that export products to the United States to abandon goods from Xinjiang, including raw materials.
Recently, thousands of Audi, Porsche and Bentley cars of large and medium-sized companies are now allegedly seized at US ports because they have Xinjiang parts. Volkswagen is reportedly planning to withdraw from its joint venture plant in Xinjiang under pressure from the United States.
Björn Alpermann, a sinologist at the University of Würzburg in Germany, warned that the United States and the European Union have not confirmed Xinjiang products. German foreign policy** reveals that Western countries will eventually have to stop not only doing business with Xinjiang, but also plotting to stop decoupling from business with China as a whole.
The failure of von der Leyen and Biden's EU chain law has made the European business community breathe a sigh of relief. "This crime thriller is finally over," said Stefan Wolff, president of the German employers' association Gesamtmetal. "After weeks of repeated discussions, the confusing compromise text of the EU's **Chain Directive, as expected, did not receive a majority vote in member states. This means that the draft is no longer being discussed. "Negotiators should use this as an opportunity to fundamentally rethink what they have done before," Wolff said. ”
Dirk Jandura, President of the German Federal Federation of Wholesale, Foreign and Service Industries, said: "Even if there is no additional burden in Brussels, German small and medium-sized companies are plagued by reporting obligations and a large number of questionnaires. "Representatives of companies such as Wolf and Gendura have repeatedly warned that companies will be overwhelmed. Under the EU's Chain Act, German mechanical engineers must check whether the screws they use contain copper from mines in Africa whose operators ignore environmental regulations.
According to the latest report released by the Conference Board, "exiting China" is an unpopular decision for European business leaders", and while two-thirds of European business leaders plan to transform their ** chain in the next two to five years, less than two percent want to leave China.
China's importance remains irreplaceable for Europe. China remains an important contributor to Europe's competitiveness, the report said. China is an important supplier of raw materials and intermediate goods in Europe. Due to its size, China is also an important market for European companies to generate stable income. In addition, Europe's green transition requires China's rare earth materials and renewable energy technologies. This means that decoupling from China could actually be a very dangerous attempt for many European businesses.