Australia-US $13bn Deal Counters China's Critical Minerals Dominance

Australia's $13 billion critical minerals deal with the United States is strategically aimed at challenging China's dominance in the global supply of critical minerals and rare earths, a fact acknowledged by Australian Prime Minister Anthony Albanese. This move comes amid previous Chinese export restrictions seen as a power play ahead of key diplomatic meetings, highlighting concerns over China's market control. Albanese emphasized that Australia's approach supports trade but opposes any single nation monopolizing critical resources, aiming instead to add value domestically and create jobs. Meanwhile, President Trump concluded a recent trade agreement with China that rolled back tariffs and included commitments from China to purchase U.S. soybeans, although the quantities pledged were considerably less than in previous deals. Critics argue that while the deal provides economic relief, it fails to address the broader issue of China's growing technological dominance and industrial policies, which remain unchallenged. Both Australia and the U.S. appear focused on countering China's influence in critical sectors, but the effectiveness of these strategies remains subject to scrutiny.