The Group of Seven (G7) nations unveiled a coordinated plan on Tuesday to reduce dependence on Chinese-controlled critical mineral supply chains, vital for defense and high-tech industries. While the final statement avoided direct references to China, the policy focus clearly pointed to the need to counter China’s market dominance and disruptive practices.
The G7 action plan emphasized the need to “diversify the responsible production and supply of critical minerals” by investing in new projects and promoting innovation. The plan seeks to secure access to rare earth elements and other essential materials without relying on China, the world’s dominant supplier.
In its statement, the G7 warned of “non-market policies and practices” that undermine global access to critical minerals. These comments refer to China’s long-standing practice of undercutting global competitors by flooding markets, using slave labor, and ignoring environmental safeguards. These actions have discouraged Western investment in domestic mining and refining operations, giving China overwhelming leverage.
The G7 called for market standards that reflect the true costs of extraction and processing—including environmental impacts and labor protections—measures that Chinese firms routinely bypass. Without naming China, the G7 signaled an intent to penalize nations that distort mineral markets through subsidies and overcapacity.
To counter Beijing’s Belt and Road Initiative and its influence over mineral-rich developing nations, the G7 plan includes increased financing for infrastructure and extraction projects in countries with promising deposits. G7 leaders stressed the importance of “transparent, fair, and sustainable” investment models as an alternative to China’s debt-driven strategies.
Incidents such as repeated trespassing by Chinese nationals at an Australian-operated rare earth site in Malawi underscore the geopolitical stakes. Canada, hosting the summit, highlighted its own mineral reserves and offered to play a key role in supplying the G7’s defense and technology sectors.
The plan also calls for fast-tracking development in key allies like Australia, India, and South Korea. However, internal obstacles remain. Canadian mineral development faces delays from environmental regulation and land-use disputes with indigenous communities.
Despite calls for stable relations with China, the G7’s strategic direction suggests a long-term move toward isolating Beijing’s influence over mineral markets critical to economic and national security.
