China versus the West: Here’s how China prepares for critical minerals and strategic tussle

China is reinforcing its dominance over rare earth metals as Unites States and its allies of over 50 nations, intensify efforts to reduce dependence on Beijing.

Chinese Premier Li Qiang recently visited Ganzhou in Jiangxi province, a major hub for heavy rare earth element production, signalling China’s possession of a slight advantage over Washington in terms of leadership. Additionally, he discussed strategy, scope and plans with the Ganjoang Innovation Academy, Chinese Academy of Sciences, a premier research institution focused on the green separation of resources, high-end materials and critical technologies, along with producers of critical minerals and local business leaders.

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In response to Western attempts to diversify the supply chains, China has tightened export controls and strengthened domestic oversight of the rare-earth element production. In many cases t, the rare earths have been used as a strategic tool during trade disputes, highlighting their geopolitical importance. Now again, China is pushing their rare earth cards to force the US President Donald Trump to lower the tariffs in exchange.

Meanwhile, the US is working with multiple countries, including india to build alternative supply chains and reduce reliance on Chinese processing. Project Vault, investments of USD 12 billion in critical mineral stockpiling to protect American industries of mining, refining, and allied partners, was launched by Trump.

Also read: USA Rare Earth secures $3.5 billion in funding as government takes stake

Rare earth elements, a group of 17 metallic elements, are essential for the manufacturing of high-tech, green energy and defence applications. Though these minerals are found in several countries, China produces the vast majority of these, with output reaching 270 thousand tonnes in 2024, accounting for nearly 70 per cent of global mine production and dominates the processing market with over 90 per cent of materials, giving leverage to Beijing in terms of supply chains.

Li also conducted a meeting with the Chinese Cabinet to place his views on harnessing artificial intelligence as an advantage to uplift industrial growth by stating, “We must cultivate an ecosystem forming synergy from data, computing, electricity, network resources and software and hardware.”

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Overall, the rare earth elements are no longer just input, became an instrument of global power politics, central to energy transition and national security, with China grabbing the attention of being the master in this trade flow.

*Image source: cdn.mos.cms.futurecdn.net