EU and US sign critical minerals plan to counter dependence on China

(AFP) The European Union (EU) and the United States on Friday signed an agreement to coordinate the supply of critical minerals in key industries - including defense - at a time when the dominance of China becomes a growing concern for both.

This pact represents an unusual recognition, by the Trump Administration, of the role of the EU, a bloc the president often criticizes.

Showing off its might in times of tension, Beijing has restricted exports of critical minerals needed to manufacture products such as semiconductors, batteries for electric vehicles and weapons systems.

"The over-concentration of these resources - the fact that they are dominated by one or two places - is an unacceptable risk," said U.S. Secretary of State Marco Rubio, as he signed a memorandum of understanding with EU trade chief Maros Sefcovic.

"The combination of the United States and the European Union is extraordinary. Together, we are the largest customers and users" of these critical minerals, he said.

"We must ensure that these supplies and minerals are available for our future, and that they are available in a way that is not monopolistic or overly concentrated in one place," the U.S. diplomacy chief noted.

An action plan states that the EU and the United States will explore the possibility of fixing minimum prices for critical minerals, effectively preventing China or other powers from flooding the market with low-cost exports.

They will also explore the coordination of possible subsidies and strategic reserves of critical minerals; harmonize joint standards to facilitate trade across the Western world; and jointly invest in research.

The Trump Administration had previously proposed the creation of a preferential trade zone between allied countries regarding critical minerals.

Washington has also submitted critical minerals action plans along with Mexico and Japan, as well as establishing a collaborative supply framework with Australia and other partners.