U.S. and Allies Form Strategic Bloc to Counter China's Grip on Critical Minerals

U.S. Vice President JD Vance announced plans to form a preferential trade bloc among allies to secure critical minerals, aiming to loosen China's dominance. The initiative proposes setting price floors to support domestic manufacturers. The strategy involves cooperation with 55 countries to reduce dependency on Chinese supplies.

U.S. Vice President JD Vance revealed an initiative to establish a preferential trade bloc for critical minerals, aiming to weaken China's control over these essential resources. The plan, presented at a meeting in Washington, proposes setting coordinated price floors to protect domestic manufacturers from being undercut by cheap imports.

The movement, supported by the Trump administration, includes 55 countries, such as India, Japan, and Germany, who are involved in refining or mining capabilities. This alliance is intended to bolster the U.S.'s strategic stockpile of critical minerals, backed by $10 billion in funding. The administration aims to reshape global supply chains, despite potential increases in manufacturing costs and escalated tensions with China.

China's grip on minerals like lithium and rare earths has been a geopolitical leverage tool, prompting the U.S. to explore alternatives with its allies. This move aligns with broader efforts to secure resources crucial for sectors like electric vehicles and defense systems, reducing dependency on Chinese-controlled supplies.

(With inputs from agencies.)