Dozens of governments invited to Washington; China excluded
The U.S. administration on Wednesday presented representatives from 54 countries and the European Union with plans to overhaul the global market for critical minerals. Aimed at making supply chains “fairer” and more stable, the proposal centers on establishing a preferential trade zone for critical raw materials. According to Vice President J.D. Vance, the zone would be shielded from “unfair” external competition through fixed minimum prices.
Reference prices would be established across all stages of production to reflect the administration’s description of the true market value of key materials. For participating countries, these prices would serve as a floor and could be reinforced with adjustable tariffs when necessary. The goal is to protect domestic producers from being undercut by cheaper imports and pushed out of the market.
It remains unclear which countries will ultimately join the proposed trade zone, although several governments have reportedly expressed early interest.
While China was not explicitly named, the measures are widely seen as targeting Beijing, which dominates much of the global value chain for critical minerals such as rare earth elements and gallium. China was notably absent from the Washington meeting. Ahead of the event, criticism emerged in Chinese state-aligned media. Experts quoted by the Global Times warned that excluding the world’s largest market participant could increase supply risks for many raw materials. They argued that a pragmatic approach toward China remains unavoidable for the international community in the critical minerals sector.
FORGE to replace the Minerals Security Partnership
In addition, the United States signed a series of agreements on Wednesday with multiple countries aimed at strengthening supply security, including resource-rich Argentina and Peru. A new international initiative, FORGE, the Forum on Resource Geostrategic Engagement, will take over coordination efforts from the Minerals Security Partnership (MSP), launched in 2022. South Korea will serve as the first chair, reflecting its strong interest in securing reliable supply chains for the raw materials required by its advanced technology industries.
A separate agreement was also reached with Japan and the European Union. Within 30 days, the EU and the U.S. plan to finalize a memorandum of understanding to boost demand resilience, diversify supply sources, and advance joint projects in mining, processing, recycling, and research. The agreement will also include mechanisms to prevent supply disruptions and improve information-sharing on strategic stockpiles.
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