Beijing pushed back Tuesday against a G7 statement criticizing its export restrictions on critical minerals, arguing the measures are necessary to protect national security and resource security. The defense comes as global supply chain vulnerabilities for minerals essential to electronics, defense, and green energy come under renewed scrutiny.
G7 statement prompts response
China's Ministry of Commerce issued a statement defending the export controls after the Group of Seven industrialized nations — the U.S., UK, Canada, France, Germany, Italy, and Japan — raised concerns over the restrictions during a recent meeting. The G7 said the controls threaten supply chains and urged China to remove them. Beijing countered that the measures comply with international trade rules and are aimed at preventing the misuse of critical minerals in ways that could harm China's security interests.
Why export controls matter
Critical minerals — including rare earths, lithium, cobalt, and graphite — are used in everything from smartphones and electric vehicle batteries to military radar systems. China dominates the processing and refining of many of these materials. The export controls, first tightened last year, require companies to obtain licenses before shipping certain minerals abroad. The move has squeezed supplies for some manufacturers outside China and driven up prices for key materials.
Supply chain vulnerabilities exposed
The dispute highlights how dependent global supply chains have become on a handful of countries for critical minerals. China refines around 60% of the world's lithium and processes 90% of rare earth elements. Any disruption ripples through industries from automotive to consumer electronics. The G7 statement called the controls a risk to economic resilience, but Beijing sees them as a leverage tool in broader strategic competition.
Calls for diversification
The situation has intensified calls among G7 governments and industry groups to diversify sources of critical minerals. Australia, Canada, and several African nations have accelerated mining and processing projects. The European Union has launched partnerships with Chile and Argentina for lithium supply. But building new mines and refineries takes years — typically seven to 15 years for a new mine to reach production. Even with faster permitting, supply gaps are likely to persist.
China's defense of its controls suggests it will not roll them back soon. The G7 has not announced countermeasures beyond urging dialogue. The next test will come at the G7 trade ministers' meeting later this year, where member countries are expected to propose joint actions to secure alternative supply lines. Whether they can move fast enough to ease the current bottlenecks remains an open question.
