Select Committee on China Chairman John Moolenaar has spoken with National Review about efforts to reduce U.S. dependence on Chinese critical minerals. The discussion comes after the committee released a report titled "Predatory Pricing: How the Chinese Communist Party Manipulates Global Mineral Prices To Maintain Its Dominance" and held a hearing focused on the same topic.
Moolenaar highlighted recent export controls imposed by China on essential materials used in products such as electric vehicle batteries, phones, and advanced missile systems. He compared this development to the historical impact of the Soviet Union’s Sputnik launch, saying, “I think China actually helped us when they put those restrictions on and basically fired that loaded gun at the American as well as the world economy. I’ve heard from different countries around the world who are concerned about this very thing. I think it was a wake up call, almost like when Sputnik was launched and people realized the Soviet Union is is trying to gain leverage in the space race,” Moolenaar told National Review last week.
He also pointed out that manufacturing remains vital for both economic stability and national defense. “Well, it turns out, for our information society, you need a lot of manufacturing and so I do think there’s a strong connection there, especially when it comes to our defense industrial base, because it’s never been clear that we need a defense industrial base that does not rely on foreign entities of concern,” he said.
The committee's report outlines several recommendations aimed at reducing U.S. reliance on China for critical minerals. These include increasing financing for domestic supply chain development, streamlining permitting processes, introducing tax credits for critical minerals production, and establishing a strategic resources reserve.
Moolenaar addressed concerns about free market principles versus national security priorities: “As it’s defense related, I think the government has always had a role of creating a demand signal, as you know, setting priorities, and we recognize you can’t have some of our military capabilities without access to these resources. It’s, you know, if we have our fighter jets dependent on Chinese raw materials, that’s a huge problem,” he said.
“We’ve always had a policy to try and buy American for our military whenever possible. And this is a case where, when it comes to some of these rare earths and critical minerals, we do not have that capability, and unfortunately are relying on our foremost adversary.”
Moolenaar called for bipartisan action in Congress to address challenges posed by China and expressed hope that upcoming national milestones would encourage companies to adopt long-term strategies over short-term gains: “A rising China, which at one point was viewed as a benign developing country...we need to rethink that because they’re ultimately trying to export their surveillance society and their leverage around the world; the critical minerals warning shot was a wake up call,” he stated.
“But there’s a lot more at stake," he added. "My hope is that the private sector will see it’s in their long term interest to support the values of this country...and not simply be drawn in by short term financial incentives.”
