China stitching up rare earths club, 19 countries already part of the alliance it eyes to dominate – Firstpost

China is moving to consolidate its dominance over the global rare earth market by proposing an international alliance for rare earth development, which already includes at least 19 countries.

according to a financial Times According to the report, Chinese Premier Li Qiang unveiled the initiative at the G20 summit in South Africa, emphasizing cooperation with resource-rich countries to control key supply chains.

Rare earths, essential for the production of modern technologies from smartphones to electric vehicles, have long been a source of strategic advantage for China.

Western companies’ access to these minerals was a central issue during trade tensions between Beijing and Washington, and the new alliance aims to strengthen China’s defenses while boosting ties with mineral-rich partners.

The proposed initiative, called the “International Economic and Trade Cooperation Initiative on Green Minerals”, seeks to promote cooperation between countries that supply, process or consume rare earths.

According to Lee, the alliance will not only enhance supply chain security but also encourage sustainable development and green technology adoption.

The 19 countries involved include Cambodia, Nigeria, Myanmar and Zimbabwe along with the United Nations Industrial Development Organization (UNIDO), which will provide assistance on the technical and industrial fronts.

By bringing together producers and stakeholders, Beijing aims to create a structured framework that can challenge US influence in the region.

The prime minister said he welcomed the “active participation of all parties” but did not give a dollar figure or many other details on the initiative, which comes as the US works to build its own alliance to secure critical mineral supply chains to counter China, according to reports. financial Times.

Beijing supported “the distribution of benefits” from the rare earth supply chain and “better safeguarding the interests of developing countries, as well as exercising discretion in its use for military and other purposes to prevent security risks,” Li was quoted as saying.

Beijing pushed the US into a trade war by imposing export licenses with strict controls on rare earths. The US argues that, as part of the recent ceasefire, China has agreed to issue general licenses that will allow companies to import rare earths more freely, although the details are still being negotiated.

China’s logic behind the alliance

Premier Lee did not elaborate on the practical implications of the green minerals initiative.

China’s Ministry of Commerce issued a supporting document that offered few specifications, stating only that the development of critical mineral industries must comply with WTO rules.

However, the Communist Party study time The newspaper outlined China’s argument for the international rare earth alliance in May.

The article, written by Hu Jun, head of a think tank under the Ministry of Ecology and Environment, said President Xi has repeatedly called for international cooperation on green minerals – such as lithium, graphite and rare earths – at global summits in recent years.

“The United States and other Western countries are intent on reshaping the global green mineral resource supply chain to curb China’s resource imports,” Hu wrote.

He said these Western-led mineral alliances have gradually expanded to African countries like Zambia and Angola.

Hu argued, “As competition among major powers intensifies, China should promote international cooperation in green minerals” and especially “further expand cooperation with developing countries.”

He also said China’s domestic reserves of upstream minerals such as cobalt, nickel, copper and manganese are less than 5 percent of the global total, making imports necessary to meet most of the country’s demand.

with inputs from agencies