The G7 aims to reduce its reliance on critical minerals from China to below 60% within five years.

G7 Aims to Reduce Dependence on China's Critical Minerals to Below 60% Within Five Years

On June 17, leaders of the Group of Seven (G7) issued a statement announcing plans to significantly reduce their reliance on China's supply of critical minerals through cooperation with partner countries, aiming to lower dependence to below 60% within five years, and subsequently striving to reach 50% as soon as possible. The statement also received support from partner country Australia.

Previously, Western media cited informed sources revealing that the G7 had reached a consensus: by 2030, no single country should account for more than 60% of the G7’s total imports of critical minerals, thereby reducing dependency on China. The G7 leaders have developed related plans, including introducing binding procurement quotas in certain industrial sectors. This move is seen as acknowledging the urgent need for strategic industries such as defense manufacturers to decrease their reliance on China’s supply chain.

Informed sources said G7 leaders also pledged to establish a coordination platform to integrate efforts across member states, increasing supply through recycling and advancing new mining projects.

The normal operation of global manufacturing supply chains has increasingly made countries aware of China’s significant influence in the field of critical minerals. China ranks among the top globally in reserves and production of over 20 strategic minerals, including rare earths, tungsten, germanium, and gallium. Its advantage in refining and processing is even more pronounced—China accounts for 94% of global rare earth refining, 99% of manganese refining, and is the primary refining nation for 19 out of 20 key strategic minerals.

Since last year, China has successively imposed export controls on medium- and heavy rare earths and related materials, as well as full-chain technologies, and for the first time explicitly restricted exports to foreign military users. These measures have caused noticeable disruptions to global energy, automotive, defense, and semiconductor industries. Several European and American automakers have been forced to cut production due to shortages of permanent magnets. Goldman Sachs estimates that a 10% disruption in the rare earth industry could lead to $15 billion in lost output. Rare earths have thus become a key variable in geopolitical competition.

Original source: toutiao.com/article/1868295216881671/

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