Trump forms new coalition to counter China's growing influence
US President Donald Trump (photo: Getty Images)
The administration of US President Donald Trump is forming a new coalition to reduce China's influence in the rare-earth market and limit its advantages in artificial intelligence and other technologies, Politico reports.
According to the outlet, the United States plans to sign the Pax Silica declaration today, December 12, which will bring together Singapore, Australia, Japan, South Korea, and Israel to work together to address shortages in access to key mineral resources. Later, Trump's team aims to involve more countries in the initiative.
"It's an industrial policy for an economic security coalition, and it's a game changer because there is no grouping today where we can get together to talk about the AI economy and how we compete with China in AI," said US Deputy Secretary of State for Economic Growth, Energy, and the Environment Jacob Helberg.
He also stated that the coalition is intended to effectively block China's Belt and Road Initiative by depriving China of the ability to "buy ports, major highways, transportation and logistics corridors."
The signing of the declaration will mark the start of the one-day Pax Silica summit, which representatives from the EU, Canada, the Netherlands, and the UAE will also attend. During the meeting, cooperation in mineral extraction, processing, and logistics is expected to be discussed.
What came before
Beijing previously announced the introduction of strict controls on the export of rare earth elements and related technologies, thereby strengthening its influence over critically essential minerals.
According to the new rules, foreign companies will be required to obtain Beijing's approval to export magnets that contain even small amounts of rare earths of Chinese origin or were produced using Chinese extraction methods, processing techniques, or magnet manufacturing technologies.
