China Races to Secure Critical Mineral Supplies Amid Western Restrictions

China is actively working to secure its access to critical mineral supplies. This effort is driven by increasing restrictions on Chinese investments from Western nations.

Chinese companies are significantly increasing their acquisitions of mines abroad. The Financial Times reported that the number of deals exceeding $100 million reached its highest level in a decade last year. This surge in activity is seen as a response to the changing geopolitical landscape, where China's investments are becoming less welcome in countries like Canada and the United States.

These acquisitions encompass a variety of resources and locations. Notable deals include gold mines in Kazakhstan, Ghana, and the Ivory Coast, a copper mine in Zambia, a copper-gold mine in Brazil, and a significant stake in a rare-earth project in Tanzania.

China's focus on mineral security is a strategic priority. The country is the leading refiner of rare earths, controlling the vast majority of global processing capacity and possessing the world's largest reserves of these critical elements. The rising demand for minerals like lithium, cobalt, and nickel, driven by the growth of clean energy and high-tech manufacturing, further emphasizes the importance of securing these resources.

Western governments are actively working to limit China's access to key minerals and processing technologies. This includes blocking Chinese investments, imposing export restrictions, and forming partnerships to diversify their own supply chains. The United States, under different administrations, has framed mineral access as a strategic priority, linking it to diplomatic efforts and conflict resolution.