China has for decades manipulated global prices of critical minerals to strengthen its industrial dominance and expand geopolitical influence, a U.S. House of Representatives committee alleged on Wednesday in a new bipartisan report.
The 50-page report, released by the House Select Committee on China and reviewed by Reuters, accuses Beijing of using its control over the supply and processing of vital resources, including lithium and rare earth elements, as an “economic weapon.”
It warns that China’s pricing strategies have distorted global markets, undermined U.S. miners, and threatened national security.
“China has a loaded gun pointed at our economy, and we must act quickly,” said committee chair John Moolenaar, a Michigan Republican and former chemist. “Beijing’s practices have caused American job losses, driven miners out of business, and jeopardized national security.”
The report, which was also endorsed by the committee’s ranking Democrat, Congressman Raja Krishnamoorthi of Illinois, claims that China’s dominant role in processing key minerals makes it “nearly impossible” for the U.S. and its allies to determine fair global prices.
It specifically accuses Beijing of artificially raising and lowering lithium and rare earth prices to serve domestic economic goals.
The committee’s findings also raise concerns about the London Metal Exchange (LME), arguing that its ownership by Hong Kong Exchanges and Clearing makes it vulnerable to Chinese influence.
“With the Chinese government looking over HKEC’s shoulder, it is difficult to determine whether the prices it publishes accurately reflect global supply and demand,” the report said.
The LME rejected the claim, saying its pricing is determined by “transparent trading activity from an international participant base” under U.K. laws and regulations.
To counter China’s influence, the committee recommends codifying existing presidential orders into law and introducing measures such as mineral price controls, expanded government oversight of price reporting agencies, and the establishment of a U.S. minerals stockpile.
Some proposals have already been implemented by President Donald Trump’s administration, including the creation of a “critical minerals czar.”
China’s embassy in Washington did not immediately respond to the report but has previously accused the U.S. of exaggerating its export controls and inciting panic over rare earth supplies.
The report concludes that a combination of coordinated policies, rather than any single measure, will be needed to reduce U.S. dependence on China for critical materials essential to defense, energy, and technology industries.
Source: Reuters
Written By Rodney Mbua
