The “China problem” is that China’s overwhelming dominance in mining, mineral processing, and the manufacturing of critical metals gives it the power to disrupt or control access for the rest of the world, creating dependency risks for the energy transition, AI data centers, and defense.
China holds a dominant position in the mineral processing of critical metals; however, an increasing number of countries are restricting the export of ore, requiring that mineral processing occur within their own borders. For example, a ban prohibiting all nickel ore exports took effect in 2014 in Indonesia. As a result, China has stepped up financing and control of foreign mines, resulting in 75% of Indonesia’s nickel refining/smelting capacity as of 2023.
China now controls a vast number of mines in Africa and Indonesia, not just the mineral processing.
