SOURCE / ECONOMY
‘De-risking’ from China is the real threat to global critical mineral supply chains
Published: Dec 25, 2024 11:32 PM
Illustration: Chen Xia/GT

Illustration: Chen Xia/GT

The suggestion by the think tank Labour Together, as reported by The Guardian, for the UK to "de-risk" its supply chains and reduce reliance on China for critical minerals, is misguided. While the idea of diversifying supply sources might ostensibly be prudent at first glance, such a strategy risks destabilizing, rather than protecting, the supply chains it aims to safeguard.

In an era where green, low-carbon technologies are reshaping industries and driving the global economy, the stability and reliability of mineral resources have become more crucial than ever. China's constructive role in the global supply of critical minerals is not merely a matter of trade; it is a product of long-standing, mutually beneficial cooperation. To deliberately weaken ties with such a key partner would not only result in higher costs and greater uncertainties but could also have far-reaching, negative consequences on the entire downstream supply chain for critical minerals - ultimately amplifying, not alleviating, the risks the strategy seeks to address.

The calls for "de-risking" or "decoupling" are driven by an unfounded fear of China, often stoked by certain Western politicians, scholars, and media who cast China as a geopolitical adversary rather than a crucial partner. If the current global landscape of critical minerals has caused dissatisfaction and concern in the West, it is largely a result of their own making - having conjured up a powerful imaginary enemy. Far from mitigating risk, the push for "de-risking" only deepens it. This misguided strategy, rooted in political rhetoric and baseless fear, threatens to unravel the global supply chain. The consequences of such an approach will be far-reaching, and nations that pursue "decoupling" will ultimately pay a heavy price for such short-sightedness.

In recent years, some Western countries, particularly the US, have begun adjusting their strategies for developing critical minerals, with a focus on localizing production, diversifying sources, and "decoupling" supply chains from China. This shift has introduced new risks and challenges to the global critical minerals market. As a key player in this international supply chain, China faces the dual challenge of responding to external pressures while ensuring the continued growth and sustainability of its own critical minerals sector. The path to overcoming these challenges lies in accelerating technological innovation, expanding exploration and extraction capacities, and strengthening China's competitive edge in this crucial industry. 

China has made significant strides in mining and processing technologies. In response to growing international competition and calls from certain Western nations to reduce dependence on China, these innovations have equipped the country with the tools needed to strengthen and broaden its influence in the global critical minerals market. By doing so, China can safeguard its own security in critical minerals while contributing to the stability of the global supply chain.

China has consistently championed mutually-beneficial international cooperation in the critical minerals sector. As one of the world's largest producers, consumers, and traders of mineral resources, China plays a constructive role in stabilizing the global supply of critical minerals.

Calls for "decoupling" are not originating from China, but rather from certain Western people who view China as a competitor or adversary. In response to these external challenges, China has both the capability and the responsibility to protect its own interests, as well as the security and stability of global supply chains, through legitimate means. 

If certain Western people persist in their misguided attempts to sever ties and decouple from China, they will eventually realize that decoupling is impossible, especially in critical mineral supply chains. 

The author is a reporter with the Global Times. bizopinion@globaltimes.com.cn