The U.S. is pouring money into Africa, but whether it can catch up with China remains to be seen!
Under the energy transition, critical minerals in Africa have become a focal point of competition between the U.S. and China. The U.S. is leveraging financing and purchase agreements to position itself in countries like the Democratic Republic of the Congo (DRC) and Zambia, aiming to divert copper-cobalt supply chains and counter China's advantages. Chinese companies have long been deeply involved in Africa, controlling core copper-cobalt assets in the DRC, and projects such as the Simandou iron ore mine have achieved results through a model of infrastructure plus resources. The U.S. focuses more on trade than on physical investment, avoids risks without deep involvement, and its scale and speed cannot match those of China, leading to a long-term and differentiated pattern in the supply chain game.
[Sagacious] The competition over African minerals is not just about capital, but also about long-termism and implementation capability. The U.S. enters the scene through financial trade, wanting to obtain resources without taking risks, which is essentially a short-sighted strategic speculation. In contrast, Sino-African cooperation has lasted decades, from the Tanzania-Zambia Railway to the Simandou iron ore mine, where infrastructure leads and industries coexist, rooted locally. Chinese companies control over 70% of copper-cobalt capacity in the DRC, forming a full-chain advantage. History has shown that zero-sum confrontation only fractures supply chains, while win-win cooperation is sustainable. With the current surge in global demand for new energy, the U.S. forcing a restructuring of the supply chain will only increase costs, while China's practical cooperation better aligns with African development and market rules. The outcome is not determined by temporary rhetoric, but by long-term strategies!
Original: toutiao.com/article/1856651625000131/
Statement: This article represents the views of the author alone.