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China is raising state funding for strategic minerals in the middle of the American trade war

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China stimulates state support for the exploration of interior minerals, while decision-makers increase the efforts to achieve the ambition of President Xi Jinpings for the self-sufficiency of resources in the middle of the intensification of competition with the United States.
In the past year, at least half of the provincial level governments of Chinas 34, including those of the main resource producing regions such as Xinjiang, announced an increase in subsidies or extended access to mineral exploration, according to an analysis of the financial times for official announcements.
The financing boost is the control of strategic minerals in the world has become a flash point between the United States and China, while superpowers compete on the resources necessary for advanced technologies such as semiconductors, electric vehicles, robotics and missiles.
A series of major breakthroughs in mineral exploration has been carried out, considerably improving the capacity to ensure the safety of important industrial channels and supply chains and to respond to external environmental uncertainties, journalists from the Ministry of Exploration and Geological Resources Management said this year.
He added that the new mineral exploration plan was closely focused on improving national energy resources and strategic minerals.
China is the world's largest producer of 30 of the 44 critical minerals followed by US Geological Survey.
In order to loosen the domination of Beijing in the sector, US President Donald Trump has prioritized national exploitation since his return to the White House in January, as well as access to critical minerals abroad, including Greenland, Ukraine and the Democratic Republic of Congo.
XI focused on the Chinese self-respected in science and technology since he became chief of the Chinese Communist Party in power in 2012.
This driving has become more imperative in the middle of increasing tensions with the United States, and Xi turned to reinforcing and prioritizing advanced manufacturing and emerging technology.
Beijing mineral supply chains are a critical point of the geopolitical lever effect in its trade and technological war with the United States. The government has devoted more than 100 billion RMB ($ 13.8 billion) to investment in geological exploration each year since 2022, the highest period of three years in a decade.
China has also tightened the control of exports of strategic minerals, many of which are crucial for the manufacture of the chip, in particular gallium, germanium, antimony, graphite and tungsten, in response to the American borders on technological exports to China.
Cory Combs, Associate Director of the Council based in Beijing, Trivium China, said that China has provided subsidies, tax incentives and other types of support for the national mining sector, regardless of the cycles of the raw materials market.
In a strict sense, it is a waste. But in the political and economic sense, it is not at all a waste, it is worth it, said Combres. In Beijing, the vision of money is not the only point.
Xinjiang the western region rich in resources but poor where Beijing has repressed the Uhih Ouceur and other Muslim minorities increased the support of geological exploration to 650mn RMB in 2025, from RMB150MN in 2023.
The National Development and Reform Commission, which has resource monitoring, has not answered questions.
China has also made long -stand efforts to lock control of critical resources abroad. The FT reported in January that China had two decades issued $ 57 billion in loans via at least 26 financial institutions supported by the State for the exploitation and treatment of copper, cobalt, nickel, lithium and rare land in the developing world.
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Under Xi, Beijing has also adopted policies aimed at protecting strategic resources. These included a decision in 2021 to prevent foreign companies from investing, even indirectly, in mining tungsten, rare earths and uranium. He also demanded the approval of the Council of State, Cabinet Chinas, so that any stranger enters a rare land extraction area.
Last year, a committee of the National Congress of Peoples, the Parliament of the Chinas rubber stamp, established a legal mechanism to facilitate the exploitation of agricultural land for the exploration of mineral resources and obtain mining rights.
Additional Wenjie Ding report in Beijing. Visualization of data by Haohsiang Ko
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