00:00Are we getting closer? Is Europe getting closer to getting a general license from China as the United States has?
00:05Yes, I think that there I can I can say that we are in very close contacts with foreign trade minister,
00:13Bank Ventao, and also his team. So we are communicating on different levels.
00:17We had here the team from China specializing on export controls like a couple of weeks ago.
00:23And I think we are getting initial reports from our industry that they are getting these general licenses.
00:29But we need to have a little bit more granular information to evaluate the whole process.
00:37But the fact that this idea was favorably received, that it seems that we are getting first general licenses
00:44and also that the Chinese side was receptive to our arguments that the processes it was set up in April
00:50required too much of a very intrusive information, too many photographs, too much detail about the supply chains.
00:59And I think that the general licensing could be could be one of the solutions how to address this issue.
01:06Does that mean that there's going to be a regime that governs this sort of issue between the EU and China?
01:10Or is it still just kind of being hopeful that things don't change, basically?
01:13I think that we kind of set up a kind of hotline with the minister Bank Ventao for, I would say, priority cases.
01:25So we are talking on our level quite regularly, but especially our teams are in permanent contacts
01:31because indeed we had moments over the last year where on my table I saw that pile of the letters from the worried CEOs of different new companies
01:43about the lack of permanent magnets, lack of legacy chips and so on and so forth was really growing quite rapidly
01:50and we needed to address it.
01:52So now I think that we set up the good channels on working level and political level to address this issue.
01:57But it's a challenge. It brings additional instability into how the global supply chain has been working
02:03and therefore my message to the European industry is you have to be prepared to pay security premium.
02:09We have to stockpile. We have to diversify because we learned the hard way how the dependencies are costly
02:16and therefore we included it into this new look, new communication on economic security
02:22because we just simply have to be much better in managing these emergencies.
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