US Aims to Forge Critical Minerals Trading Bloc to Counter China

The Trump administration plans to establish a critical minerals trading bloc with allies to reduce dependency on China. This initiative aims to secure supplies for high-tech products by maintaining tariffs and fostering production among member nations, with strategic investments and stockpiling efforts in place.

The Trump administration has taken bold steps to create a trading bloc focused on critical minerals, enlisting allies to curb reliance on China's supply. The move, announced on Wednesday, aims to fortify the West's self-reliance in obtaining essential elements for various high-tech products, from electric vehicles to fighter jets.

Vice President J D Vance highlighted the need for collective action following the exposure of dependency during the US-China trade war. By forming a trading bloc, the administration hopes to secure stable prices and expand production capabilities across participating nations.

The plan includes a strategic stockpile initiative, Project Vault, to solidify domestic reserves of rare earth elements. Key partnerships and legislative efforts are underway to ensure that supply chains remain robust and independent of China's dominance.

(With inputs from agencies.)