Rare earth resources Photo: VCG

The US trade representative (USTR) claimed that Washington has enacted the US-Mexico Action Plan on Critical Minerals, and the US, the European Commission, and Japan intend to develop Action Plans for critical minerals supply chain resilience, according to press releases from the USTR. Chinese experts said on Thursday that the US' "small-circle" approach carries strong exclusivity and protectionist overtones, warning it will only disrupt global supply chains and is unlikely to challenge China's long-established advantages across rare earths and other critical mineral supply chains in the short term.

In a press release posted on the USTR's website on Wednesday local time, US Trade Representative Jamieson Greer announced the enactment of the US-Mexico Action Plan on Critical Minerals, claiming that under the action plan, the US and Mexico will work to develop coordinated trade policies and mechanisms that mitigate critical mineral supply chain vulnerabilities. 

In a separate press release on Wednesday local time, Greer also claimed that the US, the European Commission, and Japan intend to develop Action Plans for critical minerals supply chain resilience. Under these Action Plans, the US, the European Commission, and Japan will develop coordinated trade policies and mechanisms, such as border-adjusted price floors, that can mitigate critical mineral supply chain vulnerabilities, the press release claimed. 

Although the USTR's press releases did not specifically mention China, some US media outlets claimed that the moves are aimed at China. The Wall Street Journal claimed that "the US enlists Mexico, EU and Japan in its minerals race with China." 

Jian Junbo, director of the Center for China-Europe Relations at Fudan University's Institute of International Studies, told the Global Times on Thursday that the US' "small-circle" approach remains part of its broader geopolitical competition with China and reflects the growing securitization of economic and trade issues. More importantly, he noted, such practices run counter to market principles and free trade rules, as political intervention in supply chains undermines stability, intensifies price volatility and accelerates geo-economic fragmentation, further driving supply chain fragmentation.

It should be made clear that China is the world's largest supplier of critical minerals, and fully excluding China from global supply chains is simply unrealistic, Jian said. Safeguarding supply chain stability requires abandoning unilateralism, Cold War mentality and the impulse to form closed, tariff-based blocs. Such protectionism and exclusivity are, in fact, the greatest threat to global critical supply chains, he said.

The Wall Street Journal report also claimed that the US' pacts "seek to establish a 'preferential trade zone' that would counter China's dominance in the sector."

Lin Boqiang, director of the China Center for Energy Economics Research at Xiamen University, told the Global Times on Thursday that attempts by the US, the EU and Japan to challenge China's advantages in rare earths and broader critical mineral supply chains have long been discussed, but have yet to see major breakthroughs. The core challenge lies not in resource availability, but in building a complete industrial ecosystem - one that China developed over decades and is difficult to replicate quickly, he said.

Meanwhile, experts also highlighted frictions between the US and its allies, including the EU, as Washington is increasingly prioritizing its own interests — even at the expense of its allies through tariffs. As a result, such groupings are showing visible strains and weakening cohesion, they noted. 

Lin added that even if such alliances move forward, it will take a long time before they can meaningfully challenge China's position in critical mineral processing and downstream supply chains. Countries must balance geopolitical goals with commercial realities, and turning mined resources into economically viable supply systems requires sustained investment and time, he said.

Commenting on a report that several foreign ministers met in Washington to discuss an EU proposal to establish a critical minerals partnership aimed at reducing their dependency on China, Chinese Foreign Ministry spokesperson Lin Jian said on Wednesday that on maintaining the stability and security of global critical mineral industrial and supply chains, China's position remains unchanged, and all sides have the responsibility to play a constructive role in this regard.

"On the proposal between the EU and the US, let me stress that China maintains that countries need to follow the principles of market economy and international economic and trade rules, step up communication and dialogue, jointly keep the industrial and supply chains stable and unimpeded, and advance the steady growth of world economy," Lin said.