UK's Reliance on China for Energy Supplies Could Leave 90,000 Jobs at Risk
The UK's over-reliance on Chinese supply chains for its clean energy technologies could have disastrous consequences, warn experts. A disruption to the supply of essential battery components used in electric vehicles could lead to the loss of production of over 580,000 cars and put 90,000 jobs at risk.
According to a report by the Institute for Public Policy Research (IPPR), if the UK's clean energy supply chains are hit by a shock, it could delay the rollout of solar farms and put the country's clean energy goals in jeopardy. The thinktank estimates that this would cost the economy an extra £1.5 billion a year.
The IPPR report highlights the risks associated with relying too heavily on China for critical minerals such as refining. The report states that "eighty to ninety per cent of global refining for critical minerals is controlled by China", making the UK and its allies vulnerable to geopolitical and economic shocks.
The report calls on the government to pursue a policy of "securonomics" through greater international investment and partnership. The thinktank's senior research fellow, Pranesh Narayanan, warns that the world's over-reliance on China exacerbates these risks.
"The UK is a small open trading nation sailing through an international economy whose waters are getting choppier by the day," he said. "Donald Trump's trade war with China, the rise of conflicts around the world – these shocks ultimately hurt the UK economy because we rely so much on trade to source the essentials, including clean energy technologies."
Experts predict that China will continue to gain global market share in the coming years, despite Beijing's efforts to address imbalances in its economy. The country reported a record trillion-dollar global trade surplus last year, which has raised concerns among Western nations.
However, there are signs that China is beginning to temper its industrial exports to address these imbalances. Lynn Song, chief economist for Greater China at ING, notes that Beijing is focusing on promoting domestic demand as the future growth engine.
The IPPR recommends that the government should clarify its position on Chinese investment and involvement in the UK's clean energy supply chains, invest more in domestic production of batteries and green steel, and work with allies to invest in international stockpiles of solar, battery, and critical minerals.
The UK's over-reliance on Chinese supply chains for its clean energy technologies could have disastrous consequences, warn experts. A disruption to the supply of essential battery components used in electric vehicles could lead to the loss of production of over 580,000 cars and put 90,000 jobs at risk.
According to a report by the Institute for Public Policy Research (IPPR), if the UK's clean energy supply chains are hit by a shock, it could delay the rollout of solar farms and put the country's clean energy goals in jeopardy. The thinktank estimates that this would cost the economy an extra £1.5 billion a year.
The IPPR report highlights the risks associated with relying too heavily on China for critical minerals such as refining. The report states that "eighty to ninety per cent of global refining for critical minerals is controlled by China", making the UK and its allies vulnerable to geopolitical and economic shocks.
The report calls on the government to pursue a policy of "securonomics" through greater international investment and partnership. The thinktank's senior research fellow, Pranesh Narayanan, warns that the world's over-reliance on China exacerbates these risks.
"The UK is a small open trading nation sailing through an international economy whose waters are getting choppier by the day," he said. "Donald Trump's trade war with China, the rise of conflicts around the world – these shocks ultimately hurt the UK economy because we rely so much on trade to source the essentials, including clean energy technologies."
Experts predict that China will continue to gain global market share in the coming years, despite Beijing's efforts to address imbalances in its economy. The country reported a record trillion-dollar global trade surplus last year, which has raised concerns among Western nations.
However, there are signs that China is beginning to temper its industrial exports to address these imbalances. Lynn Song, chief economist for Greater China at ING, notes that Beijing is focusing on promoting domestic demand as the future growth engine.
The IPPR recommends that the government should clarify its position on Chinese investment and involvement in the UK's clean energy supply chains, invest more in domestic production of batteries and green steel, and work with allies to invest in international stockpiles of solar, battery, and critical minerals.
90k jobs at risk just because of our energy reliance on China? 
That's a big problem. We need to diversify our supply chains ASAP! 
Here's a simple mind map to visualize the issue: 
... I mean, can you imagine having to tell people they lost their jobs because of some global supply chain issue? 
It's like, the UK is all about being clean and green now, but what if China screws everything up? 
It's not just about the economy either, it's about our future... do we really want to be reliant on one country for so much stuff? 
. Like, 90k jobs at risk over a supply chain hiccup? That's a lot of people who could lose their jobs because of something that's outside of our control. And yeah, I get that we need to invest in clean energy technologies and all that, but can't we do it without putting ourselves so far out on a limb with China?
. Investing in international stockpiles and domestic production is a solid move. And I love that Lynn Song is talking about China promoting domestic demand – maybe that's the key to making their economy less volatile? Who knows, maybe we can learn from each other and find some common ground instead of just relying on trade 
.
. and yeah, the gov should be lookin into this, like, securonomics and all that 
. but on a personal level, it's a good lesson to take control of what we can, rather than waitin for others to step up 
.
580k cars on hold 
90k jobs at risk 
it's time for the gov to diversify its supply chains 
let's not be held hostage by china's trade 
just because we're too dependent on China for our energy needs. We gotta diversify ASAP! 
️
lets get the UK's clean energy supply chains secure! 
what's the point of having a clean energy policy if we're just gonna rely on china to make our batteries and stuff? let's get our own act together and stop relying on foreign suppliers! 
, but this UK-China energy thing is like a double-edged sword 
. I mean, 90k jobs at risk? That's a lot of people losing their bread and butter 
.
. We need a more cohesive plan to reduce our reliance on China and invest in our own domestic production 
? Either way, it's time for us to get real about our energy future and stop playing musical chairs with supply chains 
.