US wants to create a critical minerals trading bloc with its allies to counter China

The Trump administration announced plans in Washington during its tenure to create a critical minerals trading bloc with allied nations and strategic partners, aiming to counter China's growing dominance in the global minerals market essential for technology manufacturing and defense industries. Critical minerals including rare earth elements, lithium, cobalt, and nickel are fundamental components in modern technologies ranging from smartphones and electric vehicles to military equipment and renewable energy systems. China currently controls approximately 80% of global rare earth processing and has been steadily expanding its influence across the entire minerals supply chain, raising concerns among Western nations about supply security. The proposed trading bloc would aim to secure reliable supply chains for these essential materials while reducing dependency on Chinese sources, though significant challenges remain including developing alternative processing facilities and establishing fair trade agreements. This initiative represents a strategic shift toward economic statecraft in the increasingly competitive tech sector, aligning with broader efforts by the United States and its allies to strengthen technological sovereignty amid rising geopolitical competition.