US pushes critical minerals trade bloc to counter China
Just so you know, Australia is a big part of this. As AAP reports:
US Vice President JD Vance has unveiled plans to marshal allies into a preferential trade bloc for critical minerals as Washington escalates efforts to loosen China’s grip on materials crucial to advanced manufacturing.
China has wielded its chokehold on the processing of many minerals as geo-economic leverage, at times curbing exports, suppressing prices and undercutting other countries’ ability to diversify sources of the materials used to make semiconductors, electric vehicles and advanced weapons.
“We want to eliminate that problem of people flooding into our markets with cheap critical minerals to undercut our domestic manufacturers,” Vance told a gathering of visiting ministers in Washington without mentioning China.
“We will establish reference prices for critical minerals at each stage of production … and for members of the preferential zone, these reference prices will operate as a floor maintained through adjustable tariffs to uphold pricing integrity,” Vance said.
President Donald Trump’s administration has stepped up efforts to secure US supplies of critical minerals after China rattled senior officials and global markets in 2025 by withholding rare earths required by American automakers and other industrial manufacturers.
Trump on Monday launched a US strategic stockpile of critical minerals, called Project Vault, backed by $US10 billion ($A14 billion) in seed funding from the US Export-Import Bank and $US2 billion ($A2.9 billion) in private funding.
Secretary of State Marco Rubio said 55 countries attended the talks in Washington, among them South Korea, India, Thailand, Japan, Germany, Australia, and the Democratic Republic of Congo, all with varying refining or mining capabilities.
The minerals are “heavily concentrated in the hands of one country,” Rubio said, without referencing China, adding that the situation had become a “tool of leverage in geopolitics”.
At the meeting on Wednesday, local time, US Trade Representative Jamieson Greer announced a bilateral plan with Mexico and a trilateral agreement with the European Union and Japan to strengthen critical mineral supply chains and set the stage for a broader agreement with other allies.
The plans aim to explore specific measures such as price supports, market standards, subsidies, and guaranteed purchases to encourage production.
The US, EU, and Japan also said they would pursue other avenues, including discussions within the Group of 7 and the Minerals Security Partnership.
A multi-country effort to establish price floors of critical minerals is the Trump administration’s latest move to exert control over private business.
The White House has taken stakes in several mineral companies as well as chipmaker Intel and has negotiated deals with drugmakers for lower prices.
By guaranteeing minimum prices through co-ordinated trade rules, Washington hopes to unlock private investment in mining and processing projects that have struggled to compete with cheaper Chinese supply.
The approach could reshape global supply chains for materials essential to electric vehicles, semiconductors and defense systems, while raising costs for manufacturers in the short term and escalating trade tensions with Beijing.
“China has long played an important and constructive role in keeping the global industrial and supply chains of critical minerals safe and stable and is willing to continue to make active efforts in this regard,” China’s embassy in Washington told Reuters when asked about the meeting.



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