G-20 calls to shield critical minerals in veiled China swipe

The Group of 20 called for greater protection of critical minerals from unilateral trade actions, in a seemingly veiled reference to China’s sweeping export curbs unleashed during Donald Trump’s trade war.

“We seek to ensure that the value chain of critical minerals can better withstand disruptions whether due to geopolitical tensions, unilateral trade measures inconsistent with WTO Rules, pandemics, or natural disasters,” the group said in a proposed draft document seen by Bloomberg News.

China weaponized its chokehold on critical minerals earlier this year as its trade spat with the US ramped up, imposing a license system that throttled the world’s access to metals needed to make everything from missiles to mobile phones.

China’s Foreign Ministry didn’t immediately respond to a request for comment made outside working hours in Beijing.

“It’s a major departure for G-20 members to call out China, albeit not by name, for its unfair and unilateral critical minerals policies,” said Wendy Cutler, a former US trade negotiator now at the Asia Society Policy Institute, adding that the language “underscores the depth of global concern” with “recent steps by Beijing to disrupt supply chains for its own gain.”

The decision comes after US leader Trump said last month that a truce stuck with President Xi Jinping had restored access to such minerals not just for America, but for “the world.”

While critical minerals were mentioned in the declaration at last year’s G-20 summit in Brazil, they got just one reference as leaders called for “responsible supply chains.” This year’s draft document dedicates a four-point section to the subject, reflecting how tensions around that issue have intensified.

That included a voluntary, non-binding blueprint to ensure that critical mineral resources “become a driver of prosperity and sustainable development.”

The declaration is happening in the absence of Xi who has sent Chinese Premier Li Qiang to the summit in his place. The language could still change during the weekend’s events.

While China’s rare earth restrictions have been widely criticized by nations across Europe and Asia, as well as in the US, it’s unclear whether they violate World Trade Organization rules. The Chinese curbs apply to dual use items targeting minerals that have military as well as commercial applications.

Much of the focus of the European leaders attending the G-20 summit will be on Ukraine and US pressure on Kyiv to agree to a lopsided peace deal with Russia. The declaration made a tepid reference to the war in Ukraine and other conflicts, alongside respecting UN principles such as territorial integrity, sovereignty and the repudiation of the use of force. The statement also condemns all attacks against civilians and infrastructure.

The decision by South Africa to write a draft declaration comes in defiance of the US, which is boycotting this weekend’s G-20 leaders’ summit in Johannesburg. Washington urged South Africa in a formal letter not to publish a joint statement, saying it would not reflect the US’ views.

“The US opposes issuance of any G-20 summit outcome document under the premise of a consensus G-20 position, without US agreement,” it said.

(By Alberto Nardelli)