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Over 50 countries took part in a first meeting in Washington, DC toward forming a US-led critical minerals trading bloc with coordinated price floors. The proposed alliance is meant to counter economic dependence on China, which controls most of the globe's rare earths mining and processing.
Transcript
00:00A diplomatic show of solidarity in Washington, as more than 50 countries join talks on critical
00:08minerals, an effort led by the U.S. to reduce reliance on China.
00:12The goal here is very simple. We all understand that having a reliable global supply chain
00:18and critical minerals and processed and finished materials are critical to everything we do.
00:23Today, it's heavily concentrated in the hands of one country.
00:25Beijing controls 70 percent of the world's rare-earth mining and 90 percent of its processing.
00:32Market dominance China has been able to use as geopolitical leverage.
00:37Last October, U.S. President Donald Trump agreed to lower tariffs on Chinese goods
00:41in return for Beijing holding off on tightening rare-earth export controls.
00:47On Monday, the White House unveiled Project Vault, a 12 billion U.S. dollar plan to stockpile critical
00:53minerals, which are needed for key products, including smartphones, cars, and even weapons.
00:59And now Washington says it hopes to create a critical mineral trading block with coordinated price floors.
01:05We will establish reference prices for critical minerals at each stage of production,
01:11pricing that reflects real-world, fair market value.
01:15The U.S. vice president also said the price floor would protect producers from being undercut by cheaper imports.
01:21Meanwhile, U.S. Trade Representative Jameson Greer announced a plan for more cooperation
01:27between the U.S., the EU, and Japan.
01:30That would also include working together on mining, refining, and processing.
01:35China's reaction to the alliance has been restrained.
01:38It all comes as Trump had a phone call with Chinese President Xi Jinping, with the U.S. president saying
02:01they talked about trade and security issues, without mentioning critical minerals.
02:08Details of the U.S.-led initiative are still being worked out.
02:11But with broad support from Wednesday's meeting,
02:13it's clear more countries are looking to loosen China's grip on the rare-earth supply.
02:18Hang Xu and Lily Lamatina for Taiwan Plus.
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