US forms coalition to counter China's rare earth dominance
What's the story
The Donald Trump administration is forming a global alliance to challenge China's dominance in critical minerals and emerging technologies. The coalition was officially launched with the signing of the Pax Silica Declaration today. It includes Singapore, Australia, Japan, South Korea, and Israel as founding members. The move comes as a response to China's massive investments in its rare earth minerals and tech sectors.
Strategic response
Coalition aims to address critical mineral access deficits
The Pax Silica Declaration is a strategic response to China's near-monopoly in rare earths, minerals vital for civilian and military purposes. The Trump administration sees this as a major threat due to China's export restrictions aimed at countering US tariffs on Chinese imports. The declaration also highlights concerns over China's heavy investments in AI and quantum computing, which could give it an upper hand in the 21st-century economy.
Future plans
Coalition expansion and global cooperation
The Trump administration hopes to expand the coalition beyond the initial five countries, bringing in more allies with mineral, technological, and manufacturing resources. The signing of the declaration will kick off a one-day Pax Silica Summit with officials from the European Union, Canada, Netherlands, and United Arab Emirates. Discussions will focus on collaboration in advanced manufacturing, mineral refining, and logistics.
Long-term goals
Coalition's vision for the future
The coalition envisions a future where it could be as influential in the AI age as G7 was in the industrial age. It aims to cooperate on export controls, foreign investment screening, and anti-dumping measures. The ultimate goal is to secure key points in the global supply chain system and counter China's Belt and Road Initiative which seeks to boost its export-led model by acquiring ports, highways, and transport corridors.