China Ramps Up Domestic Mineral Exploration to Boost Self-Sufficiency

China is intensifying its efforts to achieve resource self-sufficiency by increasing state support for domestic mineral exploration, as competition with the United States over strategic resources escalates. Over the past year, more than half of China’s 34 provincial-level governments have announced increased subsidies or expanded access for mineral exploration, according to a recent analysis.

The push for mineral self-sufficiency aligns with President Xi Jinping’s long-standing goal of reducing China’s dependence on foreign technologies and resources. This initiative has gained urgency amid rising tensions with the United States and concerns over supply chain vulnerabilities.

Xiong Zili, director of the natural resources ministry’s department of geological exploration and management, highlighted the success of these efforts, stating that “major breakthroughs in mineral exploration have been achieved,” enhancing China’s ability to secure important industrial chains and respond to external uncertainties.

China currently dominates the production of critical minerals, being the world’s largest producer of 30 out of 44 critical minerals tracked by the United States Geological Survey. In response, the United States has prioritized domestic mining and access to critical minerals abroad under President Donald Trump’s renewed administration.

Beijing has invested heavily in geological exploration, allocating over 100 billion yuan ($13.8 billion) annually since 2022, marking the highest three-year period in a decade. Additionally, China has tightened control over exports of strategic minerals crucial for chip manufacturing, including gallium, germanium, and graphite.

Cory Combs, associate director at Trivium China, noted that China’s support for the domestic mining sector goes beyond market considerations, emphasizing political and economic security.


Information for this briefing was found via Reuters and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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