The U.S. recently headed a meeting with its close allies to develop an initiative that would seek to reduce global reliance on rare earth minerals from China. However, analysts have warned that the success of such an initiative is dependent on the countries’ long-term investment and commitment. It will also be a test of the differences in political and foreign policy approaches among the allied countries.
At a meeting that hosted G7 finance ministers and other close allies such as Australia, India, South Korea, and the EU, discussions focused on vulnerabilities linked to the rare earth supply chain. This has taken place due to the countries involved in the meeting perceiving China as acting coercively to control exports of critical rare earth minerals.
It is unclear, however, whether the meeting would translate into any tangible results. This is highly dependent on each country’s independent political and ideological thinking and goals. For non-NATO allies, the question also arises as to whether they would need to source and develop supply chain processes independent of the U.S.-led initiative, as they could be vulnerable to potential U.S. influence over access. Using the example of the United States’ interest in taking over Greenland, which has been opposed by the majority of its traditional allies, this could directly affect plans set out by the initiative to cooperate on critical mineral production and supply, especially as the United States intends to tap into Greenland’s rare earth mineral deposits.
It is also unclear what the overall goal of the U.S. is in launching this initiative whether it is to establish alternative and secure supply chains for rare earth minerals or to directly confront China’s rapid development and growth in the sector. It is more likely a combination of both, as China’s substantial leverage in the rare earth sector is viewed as a direct threat to U.S. global economic power, particularly given the importance of rare earths for innovative technologies and the development of competitive industries.
The timing of the meeting also coincides with recent regional tensions between Japan and China over security concerns, more specifically related to comments on Taiwan. China views Taiwan as an integral part of China that is currently in a state of rebellion and insists that it has the right to reunite its sovereignty over the island. Japan’s new leader stated that any action taken to advance this goal would be met with resistance, igniting tensions and accusations of rising militarism in Japan. It can therefore be argued that this initiative also serves as a soft-power mechanism to rally support around Japan’s economic development and industrial interests, especially as China responds to what it perceives as Japanese provocations.
BakuTiflis 