China's Rare Earths Strategy at the G-20 Summit

At the recent Group of 20 (G-20) summit, China's Premier Li Qiang aimed to address concerns surrounding China's rare earths export restrictions while promoting a cooperative approach with developing nations. The summit, held in Africa, highlighted critical minerals as a central theme, with discussions focused on supply chain challenges faced by European leaders and the aspirations of Global South countries to benefit from the rare earths industry, where China currently holds a dominant position in processing.

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In his speech, Li defended China's decision to "cautiously manage" exports of minerals essential for military applications, articulating the rationale behind the country's stringent export controls. He emphasized China's commitment to "safeguard the interests of developing countries" while addressing military and other uses of these critical minerals. This stance comes amid ongoing tensions with the United States, which has sought to rally allies for alternative supply chains.

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In response to the summit's discussions, China announced a green mining initiative involving 19 nations, including resource-rich countries such as Cambodia, Nigeria, Myanmar, and Zimbabwe, in collaboration with the United Nations Industrial Development Organization. While the initiative aims to establish a stable and equitable framework for mining critical minerals, it lacked specific financial commitments, raising questions about its implementation.

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The initiative reflects China's strategy to counteract criticism of its unilateral trade actions, which have been highlighted in a joint G-20 declaration. This declaration called for a voluntary framework to ensure that critical mineral resources contribute to sustainable development and prosperity, addressing the concerns of developing nations.

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Leaders from various countries expressed their views on the discussions surrounding rare earths. Brazilian President Luiz Inácio Lula da Silva asserted that Brazil aims to be a partner in the global value chain for critical minerals rather than merely a supplier of raw materials. Irish Premier Micheal Martin described the discussions as reassuring, expressing hope that such meetings would facilitate genuine access to rare earth minerals in the future.

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Conversely, South Africa's Deputy Minister of International Relations and Cooperation, Thandi Moraka, highlighted the need for developing nations to enhance their technical capabilities to fully benefit from their mineral resources, pointing to a history of underinvestment in these countries.

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The G-20 summit concluded with a recognition of the need for collaboration in the critical minerals sector. Italian Prime Minister Giorgia Meloni emphasized the importance of securing supply chains for essential industrial components during her discussions with Li Qiang. However, the Chinese response to this concern was not explicitly detailed in the official statements.

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While the G-20 declaration criticized China's trade practices, the specifics of the green mining initiative remain vague, with no financial commitments disclosed. Additionally, the outcomes of ongoing negotiations between China and the United States regarding "general licenses" for rare earths exports are still pending clarification.

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• “Countries don’t just want China or the United States coming and drilling holes,” — Kevin Gallagher, Professor of Global Development Policy, Boston University

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• “We won’t be just exporters but partners in the global value chain for critical minerals,” — Luiz Inácio Lula da Silva, President of Brazil

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• “I would hope that because of these meetings and gatherings, we can avoid such situations happening in the future and have genuine access to rare earth minerals,” — Micheal Martin, Irish Premier

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• “Many developing mineral-rich countries, especially in our continent of Africa, have not fully benefited due to under investment,” — Thandi Moraka, South Africa’s Deputy Minister of International Relations and Cooperation

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