The House Select Committee on the Chinese Communist Party (CCP) has issued a warning regarding China's dominance in critical minerals, highlighting a significant economic and strategic vulnerability for the United States.
According to National Review, Representatives Zach Nunn and John Moolenaar have detailed China's systematic monopolization of rare-earth elements through subsidies, market manipulation, and acquisitions such as the 1995 purchase of Magnequench. This acquisition led to the closure of an American plant and its relocation to China. The report indicates that China controls 70 percent of global rare-earth mining, 85 to 90 percent of refining, and over 90 percent of magnet production. It uses export controls as leverage. The article advocates for a national effort using the Defense Production Act to prioritize U.S. production and integrate with allies like Australia and Japan to secure supply chains.
The U.S. Department of War reported opposition from Michigan Republican leaders against Ford's partnership with Chinese battery maker Contemporary Amperex Technology Co., Ltd. (CATL) for a battery plant due to national security risks linked to the CCP. The deal involves licensing CATL technology for a Ford-owned facility and has faced probes from House committees calling for blacklisting Chinese firms involved, with CATL already on the Foreign Entities of Concern (FEOC) list by the Department of Defense (DoD) and Pentagon. This local pushback reflects broader concerns over foreign investment in critical infrastructure amid China's dominance in battery materials.
According to TD Economics, China controls approximately half of global rare-earth mineral reserves and exercises near-complete dominance over supply chains, including 70 percent of mining and over 90 percent of processing. This monopoly allows Beijing to impose export restrictions on materials essential for U.S. defense, electronics, and electric vehicles, leading to price spikes and supply disruptions. The U.S. military's weapon systems are particularly vulnerable, with 78 percent relying on these Chinese-sourced minerals.
The House Select Committee on the Strategic Competition Between the United States and the CCP is a bipartisan congressional body focused on addressing threats from China. Chaired by Representative Moolenaar, it conducts investigations into economic dependencies and issues reports on subsidies and market manipulations by Chinese entities while working to strengthen U.S. policies on trade and security.
