US proposes critical minerals trade bloc aimed at countering China

[LiberalArkie]

February 4, 2026

WASHINGTON, Feb 4 (Reuters) - U.S. Vice President JD Vance on Wednesday unveiled plans to marshal allies into a preferential trade bloc for critical minerals, proposing coordinated price floors as Washington escalates efforts to loosen China's grip on materials crucial to advanced manufacturing.

China has wielded its chokehold on the processing of many minerals as geo-economic leverage, at times curbing exports, suppressing prices and undercutting other countries' ability to diversify sources of the materials used to make semiconductors, electric vehicles and advanced weapons.

"We want to eliminate that problem of people flooding into our markets with cheap critical minerals to undercut our domestic manufacturers," Vance told a gathering of visiting ministers in Washington without mentioning China.

"We will establish reference prices for critical minerals at each stage of production, ... and for members of the preferential zone, these reference prices will operate as a floor maintained through adjustable tariffs to uphold pricing integrity," Vance said.

INDIA, JAPAN AMONG 55 COUNTRIES AT MEETING

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https://www.reuters.com/world/china/us-hosts-countries-talks-weaken-chinas-grip-critical-minerals-2026-02-04/