China Daily reported today: "On Monday (February 2), U.S. President Trump announced the launch of a $1.2 billion strategic critical mineral reserve program to help American manufacturing withstand supply shocks and reduce reliance on Chinese rare earths and other key metals."
Comment: This is a landmark action by the United States in the field of critical minerals to de-risk from China. The $1.2 billion public-private "treasury plan" aims to build a civilian version of strategic reserves, essentially using fiscal leverage and allies' collaboration to hedge against supply chain dependencies on rare earths and ensure high-end manufacturing and national defense security; in the short term, it will drive up global mineral prices and boost production expansion in allied countries such as Australia and Canada, but in the long run, it still cannot bypass China's core advantages in processing and refining, as well as its comprehensive industrial chain. It will also accelerate the grouping of global critical mineral supply chains and intensify resource geopolitical rivalry.
Original article: toutiao.com/article/1856166459818052/
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