A US House of Representatives committee has accused China of deliberately manipulating global critical minerals prices for decades, alleging that Beijing has used its dominance in the sector as an economic weapon to expand its manufacturing power and geopolitical influence.
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The charges are detailed in a 50-page report from the bipartisan House Select Committee on China, reviewed by Reuters, marking Washington’s latest warning about Beijing’s sway over global supply chains for rare earths, lithium, and other critical minerals.
Both former President Donald Trump and President Joe Biden have moved in recent years to curb China’s dominance in the minerals industry — a sector crucial for electric vehicles, semiconductors, and defense technologies.
Committee Recommendations Include Price Controls
The committee’s legislative report seeks to codify presidential orders into law and includes recommendations for price controls and expanded government oversight of price reporting agencies.
“China has a loaded gun pointed at our economy, and we must act quickly,” said Congressman John Moolenaar, a Michigan Republican and chair of the committee.
Moolenaar, a chemist and former Dow Chemical employee, said China’s policies had eliminated American mining jobs, driven domestic producers out of business, and threatened US national security.
The report, endorsed by Democrat Raja Krishnamoorthi of Illinois, alleges that China’s role as the world’s largest processor of critical minerals has made it nearly impossible for the US and its allies to determine accurate global prices for many metals.
Concerns Over Market Influence and Transparency
The committee also raised concerns about the London Metal Exchange (LME), which it said may be vulnerable to Chinese influence because it is owned by Hong Kong Exchanges and Clearing (HKEC).
“With the Chinese government looking over HKEC’s shoulder, it is difficult to determine whether the prices it publishes accurately reflect global supply and demand,” the report stated.
The LME responded that it operates under UK laws and regulations, emphasizing that all key prices are set through transparent international trading.
Report Alleges China Targets Rare Earth and Lithium Prices
According to the report, China has manipulated prices in the lithium and rare earth sectors, raising and lowering them strategically to benefit its domestic economy.
“Each time lithium prices rose, the PRC government took action to bring lithium prices back down,” it said.
The Trump administration previously cited these pricing issues when it sought an equity stake in Lithium Americas last year.
The report presents 13 policy recommendations, including the appointment of a “critical minerals czar” — a measure that Trump implemented earlier this year — and the creation of a US strategic minerals stockpile.
“One single policy will not completely address the serious challenge the United States faces on critical minerals,” the report concluded. “We must pursue multiple policy prescriptions simultaneously.”
The Chinese Embassy in Washington did not respond to requests for comment, though Beijing has previously accused the US of exaggerating China’s export policies and stoking unnecessary alarm over global mineral trade.
