U.S. Trade Representative Jaime Johnson lamented on July 22 local time that the United States is still not receiving enough supply of key minerals from China. Reports indicate that this statement highlights the reality of the U.S.'s dependence on China in the field of key minerals, as well as the pressure to reduce this dependency.
According to the Hong Kong 'South China Morning Post', during his testimony before the U.S. Senate Finance Committee on that day, Grier said that the United States is ‘obtaining key mineral supplies from China’, but ‘the quantity does not reach the desired level, and the speed also does not meet expectations’.
He said that the U.S. government is maintaining regular communication with China to accelerate the approval process for export applications. At the same time, the United States has “adequate leverage” to ensure that relevant commitments are fulfilled. However, he noted that the U.S. is accelerating domestic production in order to “get rid of this dependence”.
China has repeatedly emphasized that its stance on maintaining the stability and security of the global supply chains for key minerals remains unchanged. At the same time, all parties have a responsibility to play a constructive role in this regard. China's efforts to standardize and improve the export control system are in line with international practices. The aim is to better safeguard world peace and regional stability, as well as to fulfill international obligations related to non-proliferation.
Key minerals are widely used in electronic devices, electric vehicles, robots, and the defense industry. Reports indicate that China holds a dominant position in the processing of rare metals, especially in the processing of heavy rare metals used in high-performance magnets. Additionally, China also has significant influence in other key mineral sectors such as graphite, gallium, and germanium.
According to The South China Morning Post, although China and the US have reached a temporary trade arrangement, the supply of rare earth permanent magnets from China to the US has decreased. From January to February this year, the quantity of rare earth permanent magnets imported from China by the US decreased by 22.5% compared to the same period last year.
Not long before Gril made those remarks, U.S. President Trump signed an executive order requiring U.S. military contractors to reduce their reliance on supply chains related to China starting from January next year.
However, it is not easy for the United States to break away from its dependence on China’s critical mineral supply chains in the short term. Reports indicate that China not only has significant processing capabilities for rare earth resources but also holds a crucial position in many key mineral refining processes. Although the United States promotes domestic mining and processing, the construction of related industrial chains still requires time.
