Beijing: China has sharply criticized a United States-led initiative to form a preferential critical minerals trade bloc with allied countries, calling the plan a threat to the established international economic and trade framework and urging nations to safeguard open, inclusive markets. The objections come as Washington seeks to reduce global dependence on Chinese-dominated mineral processing and secure supply chains essential to advanced technologies.
At a regular press briefing, a spokesperson for the Chinese Ministry of Foreign Affairs reiterated Beijing’s longstanding position that international trade and economic cooperation must remain open and non-discriminatory. The spokesperson argued that preferential arrangements crafted by a limited group of countries risk undermining multilateral trade norms and could destabilize global supply chains.
The U.S. proposal, unveiled by Vice President J.D. Vance at a summit in Washington attended by more than 50 countries, seeks to create a coalition of “like-minded” partners focused on stabilizing access to critical minerals such as lithium, rare earth elements, nickel and other resources crucial for semiconductors, electric vehicles, renewable energy infrastructure and defense technologies.
A central pillar of the plan is establishing coordinated price floors and trade mechanisms among participating nations. U.S. officials argue this would curb the influence of cheap imports that can undercut domestic industries a tactic Washington views as part of China’s near-monopoly over processing capacity. The trade bloc concept is coupled with efforts to build stronger regional supply chains through bilateral policy coordination, including a 60-day roadmap with Mexico to align trade rules and pricing strategies for critical minerals.
The initiative, backed by the Trump administration, also includes Project Vault, a strategic minerals stockpiling programme financed through public and private investment, intended to cushion markets against supply shocks and reduce reliance on any single dominant source.
China’s criticism highlights Beijing’s concern that exclusive trade blocs could fragment global markets and escalate geopolitical tensions. Chinese officials have maintained that stable critical mineral supply chains require adherence to market principles and broad cooperation rather than selective alliances. They have also stressed China’s willingness to engage in dialogue to keep supply chains smooth and uninterrupted while opposing perceived efforts to isolate its economy.
Chinese commentators and experts, quoted by state-linked media, argue that politicized groupings centring on specific minerals may actually heighten systemic risks and invite supply disruptions particularly if significant producers like China are excluded from emerging agreements. They have urged nations to pursue inclusive cooperation that respects global trade rules and leverages diverse capacities in mineral extraction and processing.
The bigger backdrop to these diplomatic exchanges is the widening competition over critical mineral resources. China currently dominates the processing of many rare earths and related materials accounting for a large share of global output a position that has prompted concerns in the United States and among allied economies about vulnerabilities in technology supply chains. Policies and export controls introduced in recent years have drawn fire from Western officials, who argue that over-reliance on China leaves industrial and defense sectors exposed to geopolitical risks.
In response, U.S. policymakers are not only pursuing the trade bloc concept but also strengthening domestic production incentives, forging strategic partnerships with partners in Asia, Europe and North America, and mobilizing legislative support for enhanced investment in extraction and processing capacity. These moves reflect a broader effort to diversify supply sources and fortify resilience against disruptions in global mineral markets.
As discussions evolve, the clash over the trade bloc reflects broader economic and geopolitical tensions between the United States and China. Beijing’s firm pushback emphasizes the complex balance between national interests, global trade norms and the imperative of secure, reliable supply chains for minerals that have become linchpins of modern technology and strategic capability.
Observers say that how governments navigate these tensions will shape not just future trade relationships but also the global industrial landscape especially in sectors like clean energy, automotive manufacturing and defense for years to come.