Chinese Premier Li Qiang has called for the establishment of an international alliance for the development of rare earth minerals, amid escalating competition between Beijing and Washington for control over supply chains of materials essential for modern technologies.
China possesses the largest share of rare earth mineral production, which are essential elements for many advanced industries, while Western companies’ access to them is a prominent point of contention in the trade war between the two countries. In contrast, Beijing seeks to expand its relations with resource-rich countries to strengthen its position and influence.
During a speech at the G20 leaders’ summit in South Africa, Li – the second highest official in Beijing after President Xi Jinping – announced the launch of what he called the “International Economic and Trade Cooperation Initiative on Green Minerals.”
According to the Financial Times, at least 19 countries are expected to join this alliance, including Cambodia, Nigeria, Myanmar, and Zimbabwe, in addition to the United Nations Industrial Development Organization.
Initiative without financial details
Li welcomed “active participation from all parties,” but did not provide clear financial or implementation details, at a time when the United States is working to establish its own alliances to secure vital supply chains in the face of Chinese influence.
The Prime Minister added that Beijing supports the “distribution of benefits” of the rare earth minerals supply chain and protects the interests of developing countries, while calling for caution in the use of these minerals for military purposes or any uses that may create security risks.
It is worth noting that Beijing faced American pressure during the trade war by imposing export licenses and strict controls on rare earth minerals, while the United States says that the agreement, which included a de-escalation, included Chinese approval of issuing general licenses allowing companies to import freely, while negotiations are still ongoing regarding the details.
Chinese vision for enhancing mineral influence
Li did not provide a detailed explanation of the meaning of “green minerals” in practice, while the Chinese Ministry of Commerce sufficed with a brief document indicating the need for the development of vital mineral industries to comply with the rules of the World Trade Organization.
However, the Study Times newspaper, affiliated with the Communist Party, presented last May the features of the Chinese vision towards international alliances for rare earth minerals. The article was based on an analysis by researcher Hu Jun An Shi, who has been calling for years for the launch of international cooperation in the fields of green minerals, such as lithium, graphite, and rare earth minerals.
The researcher pointed out that the United States and other Western countries are working to reshape global supply chains for green minerals in order to reduce their dependence on imports from China, and these alliances have gradually expanded to include African countries such as Zambia and Angola.
Hu stressed that with the escalation of competition between major powers, China must enhance its international cooperation in the field of green minerals, especially through expanding partnerships with developing countries.
Chinese need for imports
He pointed out that China’s reserves of basic resources – such as cobalt, nickel, copper, and manganese – do not exceed 5% of the global total, which forces Beijing to rely on imports to meet the bulk of its needs.
(Financial Times)
