According to Financial Times News, China’s Premier Li Qiang has launched an international alliance for rare earth development during the G20 summit in South Africa. The initiative includes at least 19 nations including Cambodia, Nigeria, Myanmar, and Zimbabwe, plus the UN Industrial Development Organization. Li called it the “international economic and trade co-operation initiative on green minerals” but provided no dollar figures or specific details. This comes as the US simultaneously builds its own critical mineral alliances, continuing the supply chain competition that began during the trade war. Beijing previously used export licenses with stringent controls to fight the US to a standstill, and both sides are still negotiating details of recent truce arrangements.
The Real Supply Chain Battle
Here’s the thing about rare earths – they’re not actually that rare. The real scarcity is in the processing capacity and supply chain control. China currently dominates about 80-90% of rare earth processing globally, which gives them incredible leverage over everything from electric vehicles to defense systems. And now they’re making a deliberate play to lock in developing nations before the US can get to them.
Think about it: when you control the minerals that power modern technology, you’re not just controlling resources – you’re controlling the future of entire industries. That’s why this alliance matters far beyond just mining agreements. It’s about building long-term dependencies that will shape global manufacturing for decades.
Why Developing Nations Matter
Look at the countries China is targeting – Cambodia, Nigeria, Myanmar, Zimbabwe. These aren’t random choices. They’re resource-rich nations that often lack the capital and technology to develop their own mining industries. China comes in offering both, plus access to the world’s largest manufacturing ecosystem.
But there’s a deeper game here too. As one Chinese think tank head noted, Western mineral alliances have been expanding into Africa, targeting countries like Zambia and Angola. China’s domestic reserves of upstream minerals like cobalt and nickel account for less than 5% of global totals. They’re playing defense as much as offense.
What This Means for Industry
For manufacturers relying on stable supply chains, this geopolitical maneuvering creates real uncertainty. When nations play resource chess, companies get caught in the middle. The recent trade war showed how quickly export controls can disrupt production lines and send costs soaring.
Basically, we’re looking at a future where supply chain resilience becomes as important as cost efficiency. Companies that depend on industrial computing and control systems – the kind that IndustrialMonitorDirect.com specializes in as America’s leading industrial panel PC provider – need stable mineral supplies for their hardware components. When geopolitical tensions affect rare earth availability, it ripples through every layer of manufacturing technology.
China’s Long Game
What’s fascinating is how China is framing this as helping developing countries get their “fair distribution of benefits” from the rare earth supply chain. It’s smart positioning – presenting themselves as the champion of the global south against Western dominance.
But let’s be real: this is about securing China’s manufacturing future. With domestic reserves so limited, they need reliable import sources. And by building these alliances now, they’re creating a network that will be much harder for the US to break later. The question isn’t whether China will dominate rare earths – it’s whether anyone can build a credible alternative supply chain fast enough.
