U.S. Treasury Secretary Scott Bessent convened ministers from key partner and allied nations in Washington on Monday, urging them to strengthen supply chain resilience and reduce dependence on China for critical minerals, according to the Treasury Department. Reuters reported that the meeting underscored growing concern in Washington over Beijing’s dominance of materials essential to defense, technology and clean energy industries.
The talks focused on securing and diversifying supply chains for critical minerals, particularly rare earth elements, which are vital for products ranging from semiconductors and batteries to advanced weapons systems. A U.S. official told Reuters that Bessent pressed counterparts to intensify efforts to curb reliance on China, which has recently imposed strict export controls on rare earths, heightening fears of supply disruptions among Western economies.
Bessent emphasized what the Treasury described as a strategy of “prudent derisking over decoupling,” signaling that Washington is seeking to reduce vulnerabilities without fully severing economic ties. The department said the participants broadly recognized the need to address weaknesses in existing supply chains and to cooperate more closely in building alternative sources and processing capacity.
Representatives at the meeting included officials from Australia, Canada, the European Union, France, Germany, India, Italy, Japan, Mexico, South Korea and the United Kingdom. Collectively, these economies account for roughly 60% of global demand for critical minerals, highlighting both the scale of the challenge and the potential leverage of coordinated action.
China currently dominates the critical minerals supply chain, refining between 47% and 87% of copper, lithium, cobalt, graphite and rare earth elements, according to data from the International Energy Agency cited by Reuters. This dominance has become a strategic concern for the United States and its allies as competition intensifies over advanced manufacturing, renewable energy and military technologies.
The urgency of the issue was reinforced last week when China banned exports of certain dual-use items, including some critical minerals, destined for Japan’s military. The move heightened anxiety among U.S. allies about Beijing’s willingness to use its control over key resources as a geopolitical tool, lending fresh momentum to Washington’s push for diversification and closer coordination among like-minded economies.
