Rare Earth Competition Intensifies as China Builds New International Alliance

China maintains a dominant position in the global production of rare earth elements, minerals essential to the functioning of numerous modern technologies. Access to these resources has long been a point of friction in the ongoing trade dispute between the United States and China. Seeking to reinforce its influence, Beijing is now working to deepen partnerships with countries rich in strategic minerals. During the G20 summit in South Africa, Premier Li Qiang, China’s second–highest-ranking official, announced a new initiative aimed at fostering international economic and trade cooperation focused on green minerals.

According to Chinese officials, at least nineteen nations—including Cambodia, Nigeria, Myanmar and Zimbabwe—along with the United Nations Industrial Development Organization, plan to participate in the alliance. Premier Li expressed appreciation for the broad engagement but provided no further details regarding specific commitments. At the same time, the United States is advancing its own alliances to secure critical mineral supplies in an effort to counter China’s longstanding advantage.

Li emphasized China’s support for a fairer distribution of benefits across the rare earth supply chain and for safeguarding the interests of developing nations, while ensuring that these minerals are used carefully to minimize security risks, particularly in military applications. China has previously used export licensing and strict regulatory controls as leverage in its trade conflict with Washington. The United States has indicated that China recently agreed to issue a general export license for rare earths, though both sides are still negotiating the finer points of the arrangement.

Li did not clarify how the new green minerals initiative would function. A related document from China’s Ministry of Commerce offered limited explanation but stressed that the development of strategic mineral industries must remain consistent with World Trade Organization rules. An article by Hu Jun, a senior researcher under the Ministry of Ecology and Environment, noted that President Xi has repeatedly advocated for international cooperation on green minerals such as lithium, graphite and rare earths. Hu argued that Western countries are restructuring global supply chains to curb China’s resource access, expanding partnerships across Africa, including in Zambia and Angola. As geopolitical competition intensifies, he wrote, China must strengthen mineral cooperation with developing countries, especially given that domestic reserves of key minerals like cobalt, nickel, copper and manganese make up less than 5% of global totals, leaving the nation heavily dependent on imports.