The West and Indo-Pacific states move to address threats posed by trade wars between China and the United States

 

What has morphed into a trade war between the United States and China, resulting in imposition of punitive sanctions against China by the US has resulted in other democracies getting involved, concerned that escalation on this front might be a threat to all democratic societies and not just the US. Keen to counteract restriction of access to Rare Earth Elements (REES), the mining and processing of which is near monopoly for China, foreign affairs heads of the US, Australia, India and Japan issued a joint statement on 1st July 2025 Washington expressing their trepidation about the possibility of restriction and disruptions of global supply chains for REEs among other fears.

On REEs, the Statement noted: “We are deeply concerned about the abrupt constriction and future reliability of key supply chains, specifically for critical minerals. This includes the use of non-market policies and practices for critical minerals, certain derivative products, and mineral processing technology. We underscore the importance of diversified and reliable global supply chains.”

It remains to be seen if the trade war resulting from unilateral actions by both the US and China will escalate. Already, countries are investing in alternative technologies for production of critical materials for transport, information and defense industries. They correctly recognize that the tit-for-tat actions  by China and the US might compromise the capacities of democratic governments to stand up to China and maintain a semblance of global power balance.

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