China unveils mining initiative at G20 summit amid export curbs
What's the story
China has unveiled a new mining initiative with "friendly nations" at the G20 Leaders' Summit in Johannesburg, South Africa. The announcement was made by Premier Li Qiang on Sunday. The plan is aimed at promoting mutually beneficial cooperation and peaceful use of key minerals while protecting the interests of developing countries. It also seeks to address military and other uses prudently.
Global participation
19 nations join China's mining initiative
The mining initiative, launched at Africa's first G-20 summit, has the backing of 19 countries. These include resource-rich nations like Cambodia, Nigeria, Myanmar, and Zimbabwe. The United Nations Industrial Development Organization (UNIDO) is also part of the project. However, no financial details have been disclosed by Beijing yet.
Initiative goals
China's mining initiative aims for fair mineral access
According to Chinese state media, the mining initiative intends to create an inclusive network for "fair and reasonable, stable and smooth" access to critical minerals. This development comes as European leaders struggle with supply chain issues and Global South countries seek help in capitalizing on a growing industry where Beijing dominates processing. The US and its allies have been working on an alternative supply chain for super-strong rare-earth magnets.
Summit discussions
G20 summit addresses China's mineral export restrictions
Critical minerals were a major focus at the G20 summit in South Africa over the weekend. Before talks began, the G20 subtly criticized China in a joint declaration for "unilateral trade actions" that restrict access to critical minerals. This has been a persistent problem for manufacturing countries like Germany and Japan.
Export rationale
China defends export restrictions on critical minerals
In his speech, Li defended the need to "cautiously manage" exports of military-critical minerals. This was China's justification for its broad restrictions. President Xi Jinping has used China's dominance over rare earths, vital for making everything from missiles to smartphones, as a shield against US tariffs. Beijing's rare earth regulations mandate exporters to obtain licenses for each shipment. These rules triggered shortages in May and disrupted parts of the auto industry.
Upcoming talks
European leaders to discuss rare earth access with China
European countries have been heavily impacted by China's decision to mandate export licenses for military-critical metals. French President Emmanuel Macron, German Chancellor Olaf Scholz, UK Prime Minister Rishi Sunak, and Irish Taoiseach Leo Varadkar are all set to visit China in the coming months. Access to rare earths is likely to be a key topic of discussion during these visits.