BTA Admin A growing geopolitical rivalry is unfolding between the United States and China, as both powers adopt contrasting strategies to control critical mineral supply chains tied to Africa.
While China continues to expand its dominance over Africa’s rare earth and critical mineral resources, the United States is shifting focus toward controlling key global shipping routes that sustain Beijing’s industrial and energy needs.
Two Competing Strategies Emerge
At the heart of the rivalry is a clear divide in approach.
China is strengthening its position at the source — investing heavily in mining operations and processing capacity across Africa. Meanwhile, the US is targeting transport and logistics, seeking influence over major maritime chokepoints that are critical to global trade flows.
These include the Strait of Hormuz and the Strait of Malacca — two of the world’s busiest and most strategically important shipping corridors.
Why These Routes Matter
A significant share of China’s energy imports depends on these narrow sea lanes.
Roughly 45–50% of China’s crude oil imports pass through the Strait of Hormuz, while 60–80% flow through the Strait of Malacca. Any disruption along these routes can delay shipments, increase costs, and slow industrial production.
Recent tensions and enforcement actions in the Gulf region have already affected tanker movements, with ripple effects on global energy markets.
China Deepens Its African Footprint
China’s leverage, however, extends far beyond shipping vulnerabilities.
Across Africa, Beijing has secured major stakes in mining projects spanning rare earth elements, lithium, copper, and other critical minerals essential for modern technologies.
Notable investments include projects in:
- Tanzania (Ngualla rare earth project)
- Botswana (copper mining assets)
- Mali (lithium projects)
- Democratic Republic of Congo (large-scale mining operations)
- Nigeria (lithium processing investments)
Chinese firms have also secured long-term supply agreements, ensuring steady access to raw materials for industries such as electric vehicles and advanced manufacturing.
Control Beyond Mining
China’s dominance is reinforced by its control of the entire value chain — from extraction to processing and manufacturing.
Estimates suggest China accounts for:
- Around 70% of global rare earth mining
- Nearly 90% of refining and separation capacity
- Over 90% of rare earth magnet production
This integrated approach gives Beijing significant influence over global supply chains.
Export Controls as Leverage
China has increasingly used export restrictions as a geopolitical tool, targeting materials such as gallium, germanium, graphite, and rare earth magnets — all critical for high-tech industries.
These measures signal Beijing’s readiness to leverage its dominance in response to global trade or political tensions.
US Strategy: Control the Flow
Facing a gap in mining and processing capacity, Washington is focusing on controlling the movement of resources, rather than their extraction.
By strengthening its presence around strategic maritime routes — including the Panama Canal — the US aims to gain leverage over supply chains that feed China’s economy.
Efforts also include expanding military and logistical access near Southeast Asia to monitor and potentially influence traffic through key shipping lanes.
A High-Stakes Supply Chain Battle
The competition between the US and China highlights a broader shift in global power dynamics, where control over resources and logistics is becoming as important as traditional military strength.
As both nations deepen their strategies, Africa remains central to the contest — not just as a source of critical minerals, but as a key player in the future of global supply chains.
