China criticizes US 'project vault' for minerals trade

The latest update from the Chinese foreign ministry informed on Thursday February 5, 2026, that China opposes any country undermining the international economic and trade order through rules imposed by small groups, after the United States unveiled plans for a preferential trade bloc of allies for critical minerals.

The US president recently said that China can open its market to U.S. goods.

While Chinese ministry spokesperson Lin Jian told a regular press briefing."Maintaining an open, inclusive, and universally beneficial international trade environment is in the common interest of all countries."

It highlights that the U.S. hosted more than 50 countries on Wednesday for talks in a push to weaken China’s persistent monopoly over critical minerals and boost the country’s unrestricted access to minerals.

The US-led global talks revolving around strategically important critical mineral supply chains will come as President Donald Trump launched “Project Vault,” the creation of a critical mineral reserve backed by $12 billion in funding both from private sources and the US Export-Import Bank.

Among the countries, India, South Korea, Germany, Australia, and the Democratic Republic of Congo are scheduled to attend the meeting in Washington.

The talks highlighted the US’ efforts to collaborate with allies, aiming to counter China’s dominance by implementing policy tools.

The discussion revolved around several measures, such as exploring the new opportunities related to mining and processing outside China and aligning trade and investment incentives.

It also included different market interventions, such as price floors, strategic stockpiles, and export restrictions, to reduce Beijing's control over supply chains.

Moreover, according to the US Secretary of Interior Doug Burgum, the purpose of the club or coalition is to reduce reliance on China.

When it comes to the critical minerals monopoly, China possesses significant leverage.

The world’s second largest economy dominates global production along with an estimated 90-99 percent of global refining and processing capacity. China currently controls about 70% of rare earth mining and 90% of the processing of the materials.

Given its tightening grip over the minerals, China has wielded influence through curbing exports and suppressing prices, thereby stripping the countries of their manufacturing capacities used to make chips , advanced weapons, and semiconductors.

According to the 2024 United States Geological Survey, 110 million tonnes of deposits were present globally. Among these reserves, China possesses 44m deposits.