G7 Nations Unite to Reduce Rare Earth Reliance on China

Finance ministers from the G7 and other major economies convened in Washington to strategize on reducing dependence on China's rare earths. Discussions focused on creating alternative supplies and setting a price floor. Despite unresolved issues, the ministers emphasized swift action and cooperation to secure critical mineral supply chains.

Finance ministers from the G7 countries and other major economies gathered in Washington on Monday to tackle the pressing issue of reducing reliance on rare earths from China. The meeting, organized by U.S. Treasury Secretary Scott Bessent, focused on strategies like setting a price floor and forming new partnerships to bolster alternative supplies.

Despite the absence of a joint statement, U.S. authorities expressed optimism about countries aiming for 'prudent de-risking over decoupling' from China. The discussions highlighted the importance of diversifying supply chains for critical minerals, particularly as China tightens export controls.

The meeting participants acknowledged the dominance of China in the global supply chain, with Finance Minister Lars Klingbeil urging Europe to accelerate its efforts to develop its raw material resources. This sentiment was echoed by other officials stressing the need for readiness and active participation in creating resilient supply networks.

(With inputs from agencies.)