US defends new minerals alliance, rejecting claims it targets China

Washington says the Forge initiative is about securing supply chains against shocks and price coercion, not building an exclusive bloc. Beijing has claimed it targets China, but a US official rejected this on Thursday.

US Official Defends Forge Initiative

On Thursday, a senior US official defended Washington’s new critical minerals push in an interview with the South China Morning Post. She described supply chain diversification as a national security measure, not an attempt to form an exclusive bloc as Beijing has claimed.

She sidestepped claims that Forge was aimed at China, which controls nearly 60 per cent of global critical mineral production and 80 per cent of refining. Instead, she framed it as a response to structural vulnerabilities in increasingly mineral-intensive supply chains.

“The focus is truly on diversifying supply chains that will help in the event there’s a disruption, like the pandemic,” Houston said. “These are prudent steps globally … and it’s an important step for national security writ large.”

She added that “by virtue of diversifying global supply chains, we are ensuring that we’re not at risk for these disruptions or price coercion”.

The Forge initiative involves countries including Australia, Democratic Republic of Congo, Peru, Philippines, Guinea, the European Union, Morocco, Paraguay, Argentina, and Ecuador. Keywords highlight potential partners like Glencore and the Cook Islands.

Critical materials are needed to make everything from defence systems and industrial robotics to washing machines. China’s dominance is facing global pushback, raising concerns over rare earths.

This move underscores supply chain security amid geopolitical tensions, though the US insists on its global and defensive nature. (148 words)

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U.S. VP JD Vance addressing allies at the Critical Minerals Ministerial, launching FORGE initiative to counter China's mineral dominance.
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US Vice President JD Vance urged allies to join a critical minerals trading bloc at a meeting in Washington. The inaugural Critical Minerals Ministerial launched the FORGE initiative as a successor to the MSP, with South Korea chairing it through June. The effort aims to counter China's dominance in key resources through diversified supply chains.

The US State Department hosted the first Critical Minerals Ministerial on Wednesday, attended by representatives from over 50 countries and organizations, aiming to break China's dominance in critical minerals vital for smartphones, weapons, and electric vehicle batteries. Vice President JD Vance called on allies to join the initiative to ensure fair market pricing and supply chain stability.

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The United States announced on Wednesday that it will work with Japan and European countries to develop an action plan for securing critical minerals supplies, amid concerns over potential Chinese export restrictions on rare earths. The initiative seeks to establish a trade bloc with allies to stabilize procurement. The U.S. Trade Representative's office indicated exploration of a plurilateral trade initiative with like-minded partners.

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A report by UK consultancy WTW identifies ongoing tariff wars and dependence on China as two top emerging risks for the global defence sector. It warns that the defence sector's reliance on Chinese materials and components, particularly rare earths and electronics, presents significant supply chain vulnerability amid geopolitical risks. The findings are based on interviews with five industry executives from Australia, Europe, and North America.

Building on plans for next week's G7 finance ministers' meeting, Japan is pursuing broader diplomatic outreach. Finance Minister Satsuki Katayama heads to the US starting Sunday for critical minerals talks, Defense Minister Shinjiro Koizumi meets his US counterpart Thursday, and Prime Minister Sanae Takaichi will summit with South Korea's Lee Jae-myung next week.

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At the World Economic Forum in Davos, world leaders took veiled swipes at the United States, while China framed itself as a defender of the post-war system, analysts say. Western countries are recalibrating their approach to Beijing amid uncertainties from Donald Trump's influence.

 

 

 

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