U.S. Pressures G7 to Counter China’s 70% Hold on Rare Earths

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U.S. Pressures G7 to Counter China’s 70% Hold on Rare Earths — Image source: Unblock Media

U.S. Treasury Secretary Scott Bessent urges decisive global action against China’s rare earth dominance.
G7-led meeting to address supply chain vulnerabilities begins Monday with urgency as a central theme.

On January 11, 2026, Reuters reported that U.S. Treasury Secretary Scott Bessent called for a global coalition to reduce reliance on China for rare earth minerals, urging decisive action at a G7-led meeting. Rare earth elements are critical components for technologies like defense systems, semiconductors, and batteries, sectors in which China's control of 70% of global production poses significant economic and strategic risks.

According to Bessent, this dependence threatens not only the stability of supply chains but also the security of critical technology manufacturing worldwide. Financial ministers and officials from G7 nations, the European Union, Australia, India, South Korea, and Mexico are expected to convene for discussions focusing on reducing reliance on Chinese exports.

Bessent expressed frustration with the limited progress made since the G7 summit held in Canada in June 2025. While leaders had agreed on an action plan to secure rare earth supply chains, most G7 members remain highly dependent on imports from China. Japan’s proactive measures following China’s export restrictions in 2010 stand out as a rare example of progress among G7 nations, according to a senior U.S. official.

The geopolitical stakes of China’s dominance are underscored by its historically aggressive trade policies. In recent years, Beijing has signaled potential export controls on critical minerals, which are essential for manufacturing military equipment such as fighter jets, submarines, and radar systems. These developments have accelerated international efforts to diversify supply chains, with initiatives like the 2025 U.S.-Australia agreement to increase investment in critical mineral projects.

The forthcoming talks, set to begin this Sunday with an initial dinner before formal discussions on Monday, will emphasize the urgency of collective action. Participants represent countries accounting for 60% of the global demand for rare earth minerals. Secretary Bessent hopes that collaborative international efforts will reduce vulnerabilities in rare earth supply chains, addressing a challenge of growing importance on the global stage.