Washington, July 15: US lawmakers and experts have raised alarms about China’s control over critical minerals, infrastructure, and advanced manufacturing, deeming it a significant threat to economic security. They also warned that Washington’s heavy tariffs could weaken the alliances necessary to counter Beijing’s influence.
During a hearing by the House Foreign Affairs Subcommittee on Economic Security and American Investment Abroad, the ‘Pax Silica’ initiative was reviewed. This initiative aims to establish reliable supply chains with American allies and partners.
Subcommittee Chairman Cory Mills stated that the country controlling advanced manufacturing, essential minerals, semiconductors, and artificial intelligence will dictate the global economy and power balance in the coming decades.
Michael Holoman, Chief Commercial Officer at US Strategic Metals, noted that Washington has allowed Beijing to dominate the essential minerals supply chain. He remarked, “I’ve seen this mineral ‘Cold War’ smoldering without our involvement. I’ve observed China outmaneuvering us everywhere. This isn’t because we couldn’t act, but because we chose not to engage in this ongoing battle.”
Holoman emphasized that the US cannot produce fighter jets, data centers, electric vehicle batteries, or smartphones without materials sourced from China, either directly or indirectly. He stated, “This isn’t a matter of choice; it’s about dependence, which has become a strategic vulnerability worsening each year we remain inactive.”
He highlighted that approximately 75% of the world’s cobalt is mined in Congo, with a significant portion processed in China. The US relies entirely on imports for 13 critical minerals and over 50% for another 20.
Researcher Clark Packard from the Cato Institute pointed out that China’s dominance poses a real weakness. He cited tungsten, used in missiles, semiconductors, aerospace components, and armor-piercing ammunition, noting that China controls nearly 80% of the global supply chain for this mineral.
Packard warned that a complete halt on exports of seven rare-earth elements and magnets from Beijing in 2025 disrupted the US semiconductor and defense supply chains. He mentioned that a Ford assembly plant in Chicago was shut down for a week due to a shortage of rare-earth magnets.
He cautioned that America’s extensive tariffs could undermine efforts to build alliances against Beijing. He stated that tariffs have strained relationships with reliable allies and increased costs for American manufacturers.
“This is a gift for Beijing, which is happy to present itself as a more reliable economic trading partner. We should open doors for friends and allies, not hide behind tariff walls,” he added.
Paul Sullivan, President of International Business at Acro Bridge, noted that Chinese companies often enter foreign markets with subsidized financing, bundled projects, and diplomatic support, which private American companies cannot match.
China has established a strong position in mining and processing essential minerals for defense systems, electronics, batteries, and clean energy technology. Western governments are continuously seeking alternative suppliers and processing facilities among friendly nations.
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