Amid global concerns over mineral export curbs, China introduced a mining initiative with “friendly nations” on Sunday, 23 November, at the G20 Leaders' Summit in Johannesburg, South Africa, Bloomberg reported. China’s Premier Li Qiang said the plan aims to promote to“promote mutually beneficial cooperation and peaceful use of key minerals,” while safeguarding "the interests of developing countries, while prudently addressing military and other uses.”
The initiative, announced at Africa’s first G-20 summit, involved 19 nations, including resource-rich Cambodia, Nigeria, Myanmar and Zimbabwe, along with the United Nations Industrial Development Organisation (UNIDO). However, Beijing did not share any financial details of the initiative, the report said.
Chinese state media said the proposal aims to establish an inclusive network to ensure the “fair and reasonable, stable and smooth” mining of critical minerals.
The development comes as European leaders grapple with supply chain issues and Global South countries appeal for assistance in benefiting from a rising industry where Beijing leads in processing. The US and its allies have been scrambling to establish an alternative supply chain for super-strong rare-earth magnets.
Critical minerals were a key theme at the G20 summit in South Africa this weekend. Even before discussions started, the G20 subtly criticised China in a joint declaration, highlighting “unilateral trade actions” that limit access to critical minerals, an ongoing challenge for manufacturing countries such as Germany and Japan.
China's justification for export curbs
In his speech on Sunday, Li Qiang justified the need to “cautiously manage” exports of minerals critical for military use, laying out China’s rationale for its sweeping curbs.
President Xi Jinping has leveraged China’s control over rare earths, crucial for manufacturing everything from missiles to mobile phones, to protect the country’s economy from US President Donald Trump’s tariffs.
Beijing's rare earth regulations, first introduced in April and expanded in October, require exporters to secure licenses for each cargo. These restrictions caused shortages in May, halting parts of the auto industry.
European nations have been significantly impacted by China’s decision to require export licenses for metals with military applications. Leaders from France, Germany, the UK, and Ireland are scheduled to travel to China in the coming months, with discussions likely focusing on access to rare earths.
China and the US are continuing to finalise negotiations for issuing “general licenses” that would allow the free flow of rare earths. This comes after Xi reached a trade truce with Trump last month, a deal Trump described as benefiting the entire world.
(With inputs from agencies.)
