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US-China Critical Minerals Competition – Strategy & Policy (2026)
US-China competition over critical minerals has become a central economic and geopolitical flashpoint in 2026, with critical minerals featuring prominently at the Trump-Xi Beijing summit. China's dominance in mineral processing creates strategic vulnerabilities for the US across AI, defense, and clean energy supply chains. A new US strategic playbook is emerging involving supply chain diversification, allied partnerships, and domestic production incentives.
Importance: 87%Confidence: 82%Mentions: 1Updated: June 22, 2026
## US-China Critical Minerals Competition – Strategy & Policy (2026)
### Overview
The competition between the United States and China over critical minerals has intensified in 2026, with a new US strategic playbook emerging in the context of Trump-Xi diplomatic engagement. A Time Magazine analysis by Goldman Sachs President of Global Affairs Jared Cohen (Time, June 15, 2026) describes critical minerals as a key economic chokepoint that dominated the agenda when President Trump met Xi Jinping in Beijing in May 2026.
### Strategic Landscape
- **China's Dominance**: China controls a dominant share of the processing and refining of rare earth elements and other critical minerals essential to AI hardware, electric vehicles, defense systems, and clean energy technologies.
- **US Vulnerabilities**: The US remains heavily dependent on Chinese-processed critical minerals across multiple strategic supply chains.
- **Trump-Xi Summit**: Critical minerals reportedly featured as a central negotiating issue at the May 2026 Trump-Xi Beijing summit (Time, June 15, 2026).
- **US Policy Response**: A new US 'playbook' is reportedly emerging that includes diversification of supply chains, partnerships with allied and partner nations, and domestic production incentives.
### Key Actors & Initiatives
- Goldman Sachs and other financial institutions are analyzing and financing critical minerals diversification (Time, June 15, 2026).
- US-Argentina critical minerals partnership and Brazil rare earth processing requirements reflect broader Western hemisphere strategy.
- The EU RESourceEU platform and European bank financing of critical minerals are parallel allied-nation efforts.
- Chile's copper sector and Congo's cobalt remain central to Western supply chain diversification.
### Legal & Business Implications
- Investment opportunities and risks in mining, processing, and logistics across Africa, Latin America, and Southeast Asia.
- Export control and sanctions frameworks increasingly applied to critical mineral supply chains.
- Environmental and human rights due diligence obligations for companies sourcing from diversification markets.
### Watch Points
- Outcomes of Trump-Xi critical minerals negotiations.
- US domestic production and processing investment incentives.
- Chinese retaliatory export restrictions (China has already imposed sulfuric acid export bans in 2026).