China boosts funding for strategic minerals amid US competition

China is increasing state support for the exploration of strategic minerals. This move is part of the country's efforts to achieve self-sufficiency in resources, especially amid rising competition with the United States. Many provincial governments in China, including key resource-producing areas like Xinjiang, have announced higher subsidies for mineral exploration. This trend has been noted in a Financial Times review of official announcements over the past year. The push for more funding comes as control over strategic minerals is becoming a significant issue in the US-China trade conflict. These minerals are essential for advanced technologies such as semiconductors and electric vehicles. Xiong Zili, a director in China's natural resources ministry, stated that new exploration plans aim to boost domestic resources and ensure the safety of supply chains. China is currently the largest producer of many critical minerals tracked by the US Geological Survey. In response to this, US President Donald Trump has also prioritized boosting domestic mining and securing access to important minerals worldwide. Since Xi Jinping became leader in 2012, China has emphasized self-reliance in science and technology. This focus has intensified due to ongoing tensions with the US. The Chinese government has invested over $13.8 billion annually in geological exploration since 2022, the highest level in a decade. Additionally, China has tightened control over exportation of important minerals like gallium and germanium, which are vital for chip production. Experts believe that Beijing’s investments in mining, despite being seen as wasteful in strict market terms, are deemed crucial for political and economic security. For instance, Xinjiang has significantly increased its support for geological exploration from 150 million yuan in 2023 to 650 million yuan in 2025. The area has also ramped up the issuance of mining exploration rights. China has long aimed to secure control of critical resources globally, issuing billions in loans for mining projects in developing countries. The government has imposed regulations to safeguard strategic resources, making it harder for foreign firms to invest in certain minerals. Overall, these moves reflect China's strategic approach to maintaining its dominance in the global minerals market while preparing for future challenges.