US Hosts G7 Talks on Rare Earth Supply Chains

The United States is set to host a high-level meeting of Group of Seven ministers this week to discuss rare earths and other critical raw materials, amid rising tensions between China and Japan over export restrictions. The talks underline growing concern among advanced economies about dependence on China-dominated supply chains that underpin defence manufacturing, clean energy, and high-technology industries.

G7 meeting in Washington and wider participation

The meeting will be hosted in Washington by US Treasury Secretary Scott Bessent, with Canada’s Finance Minister Francois-Philippe Champagne among those attending. Officials from Australia, South Korea, India, Mexico and the European Union are also expected to participate. Discussions will centre on critical minerals, rare earth processing, and the resilience of global supply chains against geopolitical disruptions.

China-Japan tensions over export curbs

The talks come as Japan raises concerns over new Chinese export restrictions on rare earth products. According to reports, China has extended curbs on shipments to Japan to include civilian-use materials, with approvals delayed or denied. The move follows diplomatic friction triggered by comments from Japanese Prime Minister Sanae Takaichi on Taiwan. Japan has accused China of “weaponising” rare earths, a claim Beijing has rejected.

Rare earths and strategic leverage

China currently dominates global rare earth mining, processing and magnet production, giving it significant leverage over downstream industries. Beijing previously used export controls to counter tariffs imposed by the United States, despite a trade truce reached between Donald Trump and Chinese President Xi Jinping in October that included commitments to ease restrictions. Washington has nevertheless continued efforts to reduce reliance on Chinese supplies, especially for rare earth magnets used in defence systems, electric vehicles and electronics.

Imporatnt Facts for Exams

• Rare earth elements are critical for defence, electronics and clean energy technologies.
• China is the world’s largest producer and processor of rare earths.
• G7 includes the US, Canada, UK, France, Germany, Italy and Japan.
• Critical minerals are increasingly linked to national security concerns.

Push for alternative supply chains

The US has signalled confidence that domestic innovation will help break China’s dominance, while Germany has expressed readiness for joint action with partners to strengthen supply chains. The Washington meeting reflects a broader alignment among industrialised democracies to diversify sourcing, invest in processing capacity, and treat critical minerals as a strategic priority in an increasingly fragmented global trade environment.