China’s Record-High Mining Investments in 2023 Raise Global Concerns

China significantly increased its investments in global mining projects last year, further tightening its control over the critical metals supply chain, according to a new study. Under President Xi Jinping’s Belt and Road Initiative (BRI), China’s involvement in overseas mining reached a record $21 billion, reflecting its strategic push to dominate the production and refining of essential minerals.

As the world grows increasingly dependent on China for key resources like lithium, cobalt, manganese, and rare earth elements, global concerns over supply chain vulnerabilities are mounting.

China’s Strategic Push for Mineral Dominance

The report, published by Griffith University in Australia and the Green Finance & Development Center at Fudan University in Shanghai, highlights how China’s state-backed and private enterprises are expanding their global reach by acquiring mining assets and securing construction contracts.

China’s competitive advantages in this sector include:
✅ Technological expertise in resource extraction and refining
✅ Financial power to support large-scale infrastructure projects
✅ Government backing for strategic acquisitions

According to Christoph Nedopil, a professor at Griffith University and one of the report’s authors:

“It is likely that Chinese policymakers are also welcoming strategic control by Chinese – often private – companies in critical minerals.”

China’s Export Restrictions and Global Tensions

China’s dominance in the metals market is already influencing global trade policies. Earlier this month, Beijing announced export restrictions on tungsten and other critical metals, which are crucial for electronics, aviation, and defense industries. This move was widely seen as a retaliation against US tariffs imposed by the Trump administration.

Meanwhile, concerns about China’s control over critical minerals have prompted Japan, the European Union, and the US to explore countermeasures. Japan, for example, is considering anti-dumping duties on Chinese-produced graphite electrodes, citing their damaging impact on domestic manufacturers.

China’s Growing Influence Over the Battery Metals Market

China controls over half of the global production of battery metals, including:
🔋 Lithium – Essential for electric vehicle (EV) batteries
🔋 Cobalt – Used in energy storage and electronics
🔋 Manganese – Key component in battery cathodes
🔋 Rare Earth Elements – Critical for high-tech industries and defense applications

In 2023, China accounted for 69% of global rare earth production, according to data from the US government.

Lithium: A Key Battleground

The race for lithium, a key element in EV battery production, highlights the geopolitical competition for resources.

• The US is strengthening partnerships with Canada and Australia to develop secure lithium supply chains.
• China is consolidating its relationships with African nations, which are projected to become major lithium producers by 2030.

Implications for Global Markets

China’s expanding influence in mining and metals refining has several implications:
📉 Potential supply chain risks for industries dependent on Chinese raw materials
📈 Higher commodity prices if China leverages its market power
🔄 Increased trade tensions as Western economies push for diversification

As governments and corporations seek alternative supply sources, China’s strategic investments in global mining will continue to shape the future of resource security and industrial competition.

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