US hosts over 50 states for talks on mineral ‘trade bloc’ against China
Chinese restrictions on rare earth mineral exports are due to take effect in November of this year
The US hosted representatives from over 50 states on 4 February for discussions on forming a “critical minerals trade bloc” to weaken China's grip over the industry, days after US President Donald Trump launched a major minerals project titled Project Vault.
South Korea, India, Thailand, Japan, Germany, Australia, and the Democratic Republic of Congo (DRC) were among the countries represented.
"We want to eliminate that problem of people flooding into our markets with cheap critical minerals to undercut our domestic manufacturers," US Vice President JD Vance told ministers on Wednesday.
"We will establish reference prices for critical minerals at each stage of production, pricing that reflects real-world fair market value, and for members of the preferential zone, these reference prices will operate as a floor maintained through adjustable tariffs to uphold pricing integrity," he added.
He also called for a “trading bloc among allies and partners” that ensures US access and “expanding production across the entire zone."
Secretary of State Marco Rubio said at the meeting that proposed frameworks will act as "platforms for coordinating policies" to ensure states have access to critical minerals.
He also said the minerals were “heavily concentrated in the hands of one country,” referring to China.
Last year, China decided to expand its restrictions on the export of rare earth minerals that are essential to the US military industry.
Following a meeting between Donald Trump and China’s President Xi Jinping, Beijing agreed to delay the restrictions. They are due to be imposed in November 2026.
The US reduced tariffs on China in exchange for the delay, yet tensions remain high.
Scott Kennedy, who leads the Chinese business and economics program at the Washington-based Center for Strategic and International Studies, told Reuters that the trade bloc talks are “a recognition by the US that it must act in concert with others to reduce its vulnerability in areas where China has supply dominance."
Washington’s new National Security Strategy has been described as seeking to corner China economically and militarily.
“The United States must be preeminent in the Western Hemisphere as a condition of our security and prosperity – a condition that allows us to assert ourselves confidently where and when we need to in the region,” the document states.