China turns to belt and road countries in race to secure tech-critical minerals

China is in a race to secure tech-critical minerals as it continues its technological advancement. These minerals are essential for the production and development of technology. Amidst the ongoing stand-off with the United States over technological capacity, China has intensified its efforts to build partnerships with countries participating in its Belt and Road Initiative. This initiative is a global infrastructure-building strategy aimed at ensuring a steady supply chain for these essential raw materials. China has secured mineral cooperation deals with over 10 countries in Asia, South America, and Africa. One such agreement is the continued investment in the Simandou iron ore project in Guinea, which is believed to have the world's largest untapped high-quality iron ore reserve. This deal will reduce China's dependency on ore from Australia and Brazil. China is also looking to Asian partners, particularly resource-rich Indonesia and Kazakhstan, to fulfil its appetite for minerals. The country is investing in a nickel cobalt hydroxide wet process project and a tungsten mine project in these countries. Last year, direct investment by Chinese companies in Indonesia reached a record US$8. 23 billion, making China Indonesia's second-largest trade partner. Other projects include the second phase of the Kamoa copper and cobalt mine in the Democratic Republic of the Congo, the Kururi potash mine project in Eritrea, and the 3Q and Cauchari-olaroz lithium projects in Argentina. Cooperation on minerals was discussed in several meetings between national leaders during the forum. Beijing has repeatedly emphasized the importance of its energy security and mineral supplies, with officials stating that two-thirds of the country's strategic mineral supply is highly dependent on external sources. This need has been made more apparent as Western countries attempt to disrupt China's supply chains for these essential elements. After the US imposed restrictions on China's access to advanced technology, China reciprocated with export restrictions on gallium and germanium, two technology-critical elements over which China has a near-monopoly supply. Both countries have an interest in securing mineral resources for industrial advancement in fields like semiconductors, artificial intelligence, and electric vehicles. Countries involved in the Belt and Road Initiative are highly complementary in both supply and demand for minerals. According to a 2017 article from China Mining News, initiative participants hold 200 types of minerals with an approximate value of US$250 trillion. Minerals have been crucial under the initiative, first sketched out by President Xi Jinping 10 years ago, on visits to Kazakhstan and Indonesia to cover the ancient Silk Road and maritime routes linking Asia, Africa, and Europe. Some countries in the Silk Road Economic Belt have resources that are in short supply in China, like copper, cadmium, and nickel. Central Asian countries with rich oil and gas resources have relatively weak exploration, development, and mining capabilities. Cooperation in this field has huge potential.