Key Takeaways
- China launched a global mining initiative with 19 nations as an alternative to US-led rare earth supply chains
- Premier Li Qiang pledged to safeguard developing nations’ interests while managing military mineral exports
- G20 nations criticized China’s unilateral trade restrictions on critical minerals
- Export license requirements caused auto industry shortages in May
China has unveiled a global mining initiative with “friendly nations” at the G20 summit, countering US efforts to build alternative rare earth supply chains. The move comes amid growing international concern over Beijing’s mineral export controls that have disrupted global manufacturing.
China’s Global Mining Partnership
Beijing shared details of its new initiative with 19 resource-rich countries including Cambodia, Nigeria, Myanmar and Zimbabwe, along with the United Nations Industrial Development Organisation. However, no financial specifics were disclosed.
The proposal aims to create an “inclusive network” for “fair and reasonable, stable and smooth” mining of critical minerals, according to Chinese state media.
G20 Criticism and China’s Response
Critical minerals dominated discussions at the G20 summit in South Africa. The group’s joint declaration subtly criticized China’s “unilateral trade actions” limiting mineral access – a particular concern for manufacturing powers Germany and Japan.
Premier Li Qiang defended China’s position, stating the country aims to “promote mutually beneficial cooperation and peaceful use of key minerals.” He pledged to “safeguard developing countries’ interests while prudently addressing military uses.”
Export Controls and Global Impact
China’s rare earth regulations, introduced in April and expanded in October, require export licenses for each shipment. These restrictions caused significant shortages in May, disrupting automotive production.
European nations have been heavily affected by China’s export license requirements for military-applicable metals. Leaders from France, Germany, the UK and Ireland plan to visit China soon, with rare earth access expected to be a key discussion point.
The US and China are negotiating “general licenses” to facilitate rare earth flow, following last month’s trade truce between Presidents Xi and Trump that was described as benefiting “the entire world.”
