Counteracting China’s Influence on Critical Minerals
During my time as the CIA’s bureau chief in a South Asian conflict zone, our primary goal revolved around identifying and preempting potential terrorist threats before they could target the U.S. homeland. We executed numerous covert operations alone but also partnered with local intelligence agencies. Although our viewpoints didn’t always align, we shared critical information regarding our common enemies and collaborated on various counterterrorism initiatives.
There was a notable instance when our team successfully tracked down a high-ranking Al Qaeda figure who was on the FBI’s most wanted list. By sharing sensitive intel with local authorities, they orchestrated a well-calculated raid, resulting in the elimination of several terrorists during the ensuing firefight.
From my experiences at the CIA, one key takeaway is that having allies can greatly enhance our efforts to safeguard our nation from those who wish to do us harm.
Now, the Trump administration seems to be employing a similar approach to secure vital mineral supply chains while mitigating risks posed by communist China, the leading global miner and processor of rare earth elements. China has a tendency to wield its trade practices as a means of coercion against countries that it views as adversaries.
Rare earth minerals are crucial for producing semiconductors, engines, and military aircraft, all integral to our national security. The last thing anyone wants is to be dependent on China for these resources.
China is known for resorting to unfair trade tactics, such as flooding global markets with excess rare earths to undercut prices, aiming to drive competitors out of the market.
In response, the Trump administration has devised measures to curtail China’s dominance in the rare earth sector. Citing concerns over China’s efforts to control the global economy, President Trump has recently inked an $8 billion deal for rare earths with Australian Prime Minister Anthony Albanese. Additionally, he secured agreements with Thailand and Malaysia during a trip to Asia.
The administration has also applied strategies aimed at reducing reliance on Chinese-controlled materials, particularly polysilicon, a crucial component for microchips. To mitigate risks associated with China’s overwhelming share of the polysilicon market, the Trump administration is wisely turning to Germany, a NATO ally, for most of its imports.
Moreover, the administration is looking into national security risks stemming from imports from various other nations, including China. The control China exerts over the polysilicon market, through state subsidies and overproduction, exemplifies the tactics of the Chinese Communist Party regarding strategic resources.
As the ancient Chinese philosopher Sun Tzu said, “If the enemy has an alliance, the problem is serious and the enemy’s position is strong.”
The U.S. is pioneering efforts to create a global network of essential technology components needed to safeguard national security against aggressive mercantilism from China.
Leaders like Chinese President Xi Jinping thrive on the idea of weakened and divided adversaries. By joining forces, the United States and its trade partners can only enhance their resilience in defending recognized borders, ensuring navigation freedoms, and promoting free trade, all vital to the U.S. and the global economy.
