A new bipartisan investigation by the House Select Committee on the Chinese Communist Party (CCP) details how China manipulates global critical minerals markets, raising concerns about U.S. economic and national security. The report, titled "Predatory Pricing: How the Chinese Communist Party Manipulates Global Mineral Prices to Maintain Its Dominance," was released by Chairman John Moolenaar (R-MI) and Ranking Member Raja Krishnamoorthi (D-IL).
Moolenaar stated, "From cell phones to fighter jets, every American is dependent on minerals that China manipulates for its own selfish interests. As we saw last month with its rule on rare earths, China has a loaded gun that is pointed at our economy, and we must act quickly. China’s predatory practices have caused American job losses, driven American miners out of business, and jeopardized national security. This new investigation reveals China’s playbook and makes crucial recommendations for how we can secure our future for generations to come."
Krishnamoorthi added, “This bipartisan investigation shows that the CCP simply does not play by the rules on critical minerals. For decades, the CCP has systematically undercut competitors and distorted the global minerals markets to achieve dominance. Last month, with the announcement of its new rare earths export control regime, the CCP showed just how dangerous our dependence has become. Working with our allies around the world and environmental and labor rights stakeholders, America must usher in a new chapter when it comes to critical minerals and rare earths."
Congressman Rob Wittman (R-VA), who co-led the Select Committee's Critical Minerals Policy Working Group last Congress, said: "Critical minerals are vital inputs for countless industries, including defense, energy, and healthcare. Establishing a strategic reserve, as recommended in this new report, is essential to strengthening America’s supply chain and ensuring national security. China’s monopolization of critical minerals has threatened our competitiveness and the resilience of the defense industrial base. It is time to put an end to this dependence and put the U.S. at the forefront of global innovation.”
The investigation found that China's government subsidizes state mining companies with tens of billions of dollars—including zero-interest loans—to support global acquisition of mining assets. It also established legal frameworks allowing Beijing control over mineral price reporting so it can adjust prices according to national interests.
According to the report's findings:
- The People's Republic of China (PRC) drove down prices for key resources such as lithium.
- When prices were low globally, PRC-subsidized firms acquired mining assets aggressively.
- These strategies helped cement China's control over global supply chains.
The committee highlighted historical context as well; Deng Xiaoping described China's approach in 1992: “There is oil in the Middle East, there is rare earth in China.” The report states: "The PRC government, under the Chinese Communist Party (CCP), has engaged in a coordinated, decades-long scheme to control different critical minerals and bend the global market to their will. The PRC's domination of critical minerals stems from its view of minerals in geostrategic terms, not as typical market commodities."
The report notes that on October 9th this year China's Ministry of Commerce issued a global export licensing regime for rare earth items—a move described as part of long-term efforts culminating in direct control over supply chains containing even small amounts of Chinese rare earths.
Policy recommendations include creating a single coordinating authority—potentially a “Critical Minerals Czar”—to align financing programs; expediting permitting timelines while maintaining safeguards; preventing unfair imports through temporary minimum pricing; developing federal tools for price discovery; establishing a Strategic Resources Reserve; enhancing coordination among allies; supporting domestic manufacturing innovation; introducing tax credits or low-cost loans for projects; and building an American workforce specialized in rare earths.
For more information or access to the full report see [House Select Committee on CCP releases bipartisan investigation](https://selectcommitteeontheccp.house.gov/media/press-releases/bipartisan-investigation-reveals-how-ccp-manipulates-critical-minerals-market).
