US and EU sign critical minerals pact to reduce China dependence
The United States and the European Union signed a memorandum of understanding on Friday to deepen coordination on critical minerals, aiming to reduce reliance on China for materials essential to semiconductors, electric vehicles, and advanced weapons. US Secretary of State Marco Rubio and EU Trade Commissioner Maros Sefcovic formalized the partnership in Washington. Rubio emphasized the need for supply chain diversity, stating that overconcentration in one or two places poses an unacceptable risk. US Trade Representative Jamieson Greer announced a separate action plan to address non-market policies distorting critical minerals supply chains. China currently dominates processing of many such minerals, using its leverage to curb exports and suppress prices.
Key facts
- US and EU signed a critical minerals partnership on Friday.
- Marco Rubio and Maros Sefcovic signed the memorandum of understanding.
- The agreement aims to loosen China's grip on critical minerals.
- China dominates processing of minerals used in semiconductors, EVs, and advanced weapons.
- Rubio stressed the need for supply chain diversity.
- Jamieson Greer announced a separate action plan on trade policies.
- The signing took place in Washington.
- China has used its chokehold as geoeconomic leverage.
Entities
Institutions
- European Union
- US Department of State
- Office of the United States Trade Representative
Locations
- Washington
- United States
- European Union
- China
- Brussels