By Gao Yun
U.S. Vice President JD Vance on Wednesday, Feb. 4 in Washington announced a new initiative to form a “Critical Minerals Trade Group” involving allied countries, and to establish a price floor mechanism to ensure stable supplies of key resources and reduce dependence on the Chinese Communist Party (CCP). The plan focuses on critical raw materials needed for industries such as semiconductors, electric vehicles, and advanced weaponry, signaling that the U.S. is accelerating the restructuring of global supply chains.
At the opening of the meeting, Vance noted that over the past year, countries have deeply realized the economic importance of critical minerals. He emphasized that this is a key opportunity for self-reliance. By cooperating with allies to build stable trade networks, countries can secure the core resources needed for industrial and economic development without relying on external powers.
He stressed that now is a crucial moment to achieve self-reliance; by working together, countries can access the critical resources necessary to support industrial and economic growth without depending on outside forces.
Vance stated that the U.S. will set reference prices for critical minerals, accompanied by adjustable tariff mechanisms to ensure price stability and prevent market disruption from dumping.
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For a long time, the CCP has used its dominant position in mineral processing to restrict exports and depress prices, disrupting normal market operations and hindering other countries’ efforts to diversify supplies. Last year, China’s export restrictions on rare earths created supply risks for U.S. and international manufacturers, drawing global attention.
To address these challenges, President Donald Trump on Monday launched the “Project Vault,” backed by $10 billion from the U.S. Export-Import Bank and $2 billion in private investment, aimed at establishing a national strategic reserve of critical minerals.
55 countries gather in Washington to build a new supply framework
At Wednesday’s Washington meeting, U.S. Secretary of State Marco Rubio said representatives from 55 countries attended, including South Korea, India, Japan, Thailand, Germany, Australia, and the Democratic Republic of the Congo. These countries each have unique capabilities in the mining and refining of critical minerals.
Rubio noted that global critical minerals are currently highly concentrated in one country and have been used as a geopolitical tool, emphasizing that this is an opportunity for joint action by multiple nations.
U.S. Trade Representative Jamieson Greer also announced that the U.S. has reached a bilateral cooperation agreement with Mexico and trilateral agreements with the EU and Japan, focusing on price support, market standards, subsidy mechanisms, and procurement guarantees, laying the foundation for broader supply chain cooperation.
Additionally, the U.S., EU, and Japan stated they will continue related cooperation under the G7 and the Minerals Security Partnership frameworks.
To strengthen global response, the U.S. is shifting from a single domestic project mechanism to an international solution based on trade rules, unlocking more private investment to support local mineral development projects.
This strategy is expected to reshape the global supply chains for electric vehicles, semiconductors, and the defense industry, while imposing substantial constraints on the CCP’s resource control.
Although the Chinese Embassy in the U.S. claims it “is willing to maintain global supply chain stability,” in reality, the CCP has repeatedly expanded rare earth export controls and manipulated lithium prices, causing delays and production risks for many European and American automakers.
As the U.S. initiative continues, Secretary of the Interior Doug Burgum announced that 11 more countries will join the mineral trade alliance this week. Current members include the U.S., Australia, Japan, South Korea, Saudi Arabia, and Thailand, with 20 more countries expressing strong interest in joining.
Scott Kennedy, head of the China Economic Project at the Washington think tank Center for Strategic and International Studies (CSIS), stated that this move represents a strategic countermeasure by the U.S. and its partners against the CCP’s dominance in global supply chains.
