?VIAN-LES-BAINS, France ¨C The White House¡¯s push to boost critical minerals production by regulating prices is facing ?skeptical G7 allies and a divided mining industry, with negotiations for a Western trading bloc stumbling over concerns about the plan¡¯s cost and governance, according to diplomatic sources and an analysis of corporate policy recommendations.
First proposed by U.S. Vice President JD Vance in February, the trading bloc aims to help the West wean itself off China, which became the world¡¯s largest minerals producer by operating at a loss and dampening prices for the building blocks of semiconductors, computer servers, military equipment and myriad other products. Artificially low prices for cobalt, lithium, nickel and other minerals have made it harder for Western mining rivals to compete, inhibiting new development and driving some companies out of business ¡ª a tactic Beijing has used repeatedly in other industries. The trade bloc, as envisioned, would explore price supports, market standards, subsidies, or guaranteed purchases to encourage and financially underpin production across multiple countries.
The measures could be enforced ?by ¡°adjustable tariffs to uphold pricing integrity,¡± Vance said at the time. At present, many niche minerals critical to tech and defense are traded over-the-counter with minimal transparency and linked to Chinese prices, which de facto set the global market due to China¡¯s dominant production.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.