Indonesian Political, Business & Finance News

New US-China War Now Vies for Critical Mineral Treasures: This is the West's Sly Strategy Against Beijing

| | Source: REPUBLIKA Translated from Indonesian | Trade
New US-China War Now Vies for Critical Mineral Treasures: This is the West's Sly Strategy Against Beijing
Image: REPUBLIKA

REPUBLIKA.CO.ID, JAKARTA — The United States and the European Union have officially deepened their strategic cooperation in securing critical mineral supply chains, a step viewed as a direct effort to counter China’s dominance in the global technology industry. This agreement was announced in recent days and marks a new escalation in resource-based geopolitical rivalry.

This step does not stand alone but is part of a broader Western strategy to reduce dependence on China, particularly in vital sectors such as semiconductors, green energy, and artificial intelligence.

According to a Reuters report, the United States and the European Union have agreed on a joint action plan to strengthen policy coordination on trade and investment in key minerals.

This cooperation encompasses various aspects, from exploration and production to processing and recycling of critical minerals such as rare earths, lithium, and cobalt. All these components form the main foundation for future technology industries.

Reuters reported that this step is also aimed at addressing what is termed as “market distortions” that have occurred due to non-market practices in the global supply chain.

“China uses its dominance as geo-economic leverage,” Reuters quoted from Western officials, highlighting how Beijing’s control over mineral exports and prices can have widespread impacts on global industries.

China’s dominance in this sector is indeed significant. The country controls the majority of the world’s rare mineral processing capacity, making it a key player in the global technology supply chain.

This situation raises concerns in the West, especially as critical minerals become essential components in the production of chips, electric vehicle batteries, and modern weaponry systems.

Therefore, the US and EU step is considered not merely an economic policy but part of a long-term geopolitical strategy to maintain technological superiority.

This coordination also paves the way for the possible formation of broader multilateral agreements in the future, which would bind partner countries in a more structured framework.

In a separate report, Reuters stated that both parties are committed to aligning trade policies to create a more transparent and sustainable market.

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