Washington, D.C. | July 15, 2026
China Critical Minerals dominance has become a growing concern for US lawmakers and industry experts, who warned during a congressional hearing that Beijing’s control over strategic minerals, advanced manufacturing, and key supply chains poses a significant challenge to America’s economic and national security. At the same time, several experts cautioned that broad US tariffs could weaken alliances needed to reduce dependence on China.
The concerns were raised during a hearing of the US House Foreign Affairs Subcommittee on Economic Security, Strategic Technologies, and Critical Supply Chains, which reviewed the Pax Silica Initiative—an effort aimed at building trusted supply chains with US allies and partners.
Strategic Industries Depend on Critical Minerals
Opening the hearing, Subcommittee Chairman Rep. Cory Mills said the global race for control over advanced manufacturing technologies is becoming increasingly important.
According to Mills, countries that dominate:
- Advanced manufacturing
- Critical minerals
- Semiconductors
- Artificial intelligence
will shape the global economy and geopolitical balance of power for decades to come.
He argued that securing resilient supply chains has become an essential element of long-term economic security.
Experts Warn US Fell Behind China
Michael Holoman, Chief Commercial Officer at US Strategic Metals, told lawmakers that the United States has allowed China to establish a dominant position in critical mineral supply chains.
Holoman said he has watched what he described as a “cold war” over strategic minerals develop while the United States failed to respond adequately.
According to him, China’s leadership in mineral processing is not the result of America’s lack of capability but rather years of insufficient investment and strategic engagement.
Dependence Extends Across Key Industries
Holoman warned that the United States currently relies—either directly or indirectly—on Chinese materials for manufacturing products such as:
- Fighter aircraft
- Data centers
- Electric vehicle batteries
- Smartphones
He described the issue as a matter of strategic dependence rather than commercial preference, warning that continued reliance increases national vulnerability.
China’s Role in Global Mineral Processing
Holoman noted that although approximately 75% of the world’s cobalt is mined in the Democratic Republic of the Congo, much of it is processed in China.
He also said the United States remains:
- 100% import-dependent for 13 critical minerals
- More than 50% import-dependent for another 20 strategic minerals
These figures, he argued, highlight the need for diversified and secure supply chains.
Rare Earth and Tungsten Supply Raises Security Concerns
Clark Packard, a research fellow at the Cato Institute, described China’s dominance in critical minerals as a genuine strategic weakness for the United States.
He pointed to tungsten, a material used in:
- Missiles
- Aerospace components
- Semiconductors
- Armor-piercing ammunition
According to Packard, China controls approximately 80% of the global tungsten supply chain.
He also referenced Beijing’s 2025 export restrictions on seven rare earth elements and magnets, saying they disrupted semiconductor and defense supply chains in the United States.
Packard noted that Ford Motor Company temporarily suspended production at one of its Chicago assembly plants because of shortages in rare-earth magnets.
Tariffs Could Undermine Strategic Alliances
While emphasizing the risks posed by China’s market dominance, Packard also warned that broad US tariff policies could unintentionally weaken partnerships with allied nations.
He argued that higher tariffs have:
- Increased costs for American manufacturers.
- Created friction with trusted allies.
- Reduced opportunities to build coordinated supply chains outside China.
According to Packard, strengthening partnerships with friendly nations would be a more effective long-term strategy than relying solely on trade barriers.
Chinese Firms Benefit From State Support
Paul Sullivan, President of International Business at Acrow Bridge, testified that Chinese companies often compete internationally with extensive government backing.
According to Sullivan, Chinese firms frequently receive:
- Subsidized financing.
- Integrated infrastructure packages.
- Diplomatic support.
- Coordinated government assistance.
He said private American companies often struggle to compete against those state-supported advantages in overseas markets.
Western Governments Seeking Alternatives
The hearing highlighted growing efforts by the United States and its allies to diversify supply chains for minerals essential to:
- Defense systems
- Electronics
- Electric vehicle batteries
- Renewable energy technologies
- Artificial intelligence
- Semiconductor manufacturing
Western governments continue to explore alternative mining, processing, and refining partnerships with allied countries to reduce dependence on China for strategic raw materials.
