Amid global concerns over minerals export curbs, China introduced a global mining initiative with “friendly nations,” an indirect response to US efforts to rally allies for an alternative rare earth supply chain, Bloomberg reported.
The development comes as European leaders deal with supply chain issues and Global South countries appeal for assistance in benefiting from a rising industry where Beijing leads in processing. The US and its allies have been scrambling to establish an alternative supply chain for super-strong rare earth magnets.
China aims to“promote mutually beneficial cooperation and peaceful use of key minerals,” China’s Premier Li Qiang was quoted as saying by the new agency. He further pledged that his country would “safeguard the interests of developing countries, while prudently addressing military and other uses.”
China’s mineral export plan
In the press briefing as the summit wrapped, China shared details of the initiative with 19 nations, including resource-rich Cambodia, Nigeria, Myanmar and Zimbabwe, along with the United Nations Industrial Development Organisation. However, Beijing did not share any financial details of the initiative, the report said.
The proposal aims to establish an inclusive network to ensure the “fair and reasonable, stable and smooth” mining of critical minerals, according to Chinese state media.
Critical minerals were a key theme at the G20 summit in South Africa this weekend. Even before discussions started, the G20 subtly criticised China in a joint declaration, highlighting “unilateral trade actions” that limit access to critical minerals, an ongoing challenge for manufacturing countries such as Germany and Japan.
China’s justification for export curbs
In a speech on Sunday, Li justified the need to “cautiously manage” exports of minerals critical for military use, laying out China’s rationale for its sweeping curbs.
President Xi Jinping has leveraged China’s control over rare earths, crucial for manufacturing everything from missiles to mobile phones, to protect the country’s economy from US President Donald Trump’s tariffs.
Beijing’s rare earth regulations, first introduced in April and expanded in October, require exporters to secure licenses for each cargo. These restrictions caused shortages in May, halting parts of the auto industry.
European nations have been significantly impacted by China’s decision to require export licenses for metals with military applications. Leaders from France, Germany, the UK, and Ireland are scheduled to travel to China in the coming months, with discussions likely focusing on access to rare earths.
China and the US are continuing to finalise negotiations for issuing “general licenses” that would allow the free flow of rare earths. This comes after Xi reached a trade truce with Trump last month, a deal Trump described as benefiting the entire world.
(With inputs from agencies.)