US lawmakers warn China’s control of critical minerals threatens economy amid Trump tariffs

During a July 15 hearing of the House Foreign Affairs Subcommittee on Economic Security, U.S. lawmakers and experts warned that China’s dominance over critical minerals, advanced manufacturing and artificial‑intelligence technologies poses a serious economic‑security threat. The committee reviewed the “Pax Silica” initiative, aimed at building trusted supply‑chain partnerships with allies.

U.S. Strategic Metals commercial chief Michael Holman said, “I have seen the cold war of minerals … we have not participated in the ongoing battle,” adding that without Chinese‑sourced materials the United States cannot produce fighter jets, data‑center equipment, electric‑vehicle batteries or smartphones. He noted that about 75 % of the world’s cobalt is mined in the Democratic Republic of Congo but largely processed in China, and that the U.S. relies on imports for all 13 designated critical minerals and over half of another 20.

Cato Institute researcher Clark Packard said China controls roughly 80 % of the global supply chain, citing tungsten as an example. He recalled that a 2025 Chinese export curtailment of rare‑earth magnets disrupted U.S. semiconductor and defense supply chains, even forcing a Ford assembly plant in Chicago to shut for a week. Packard warned that broad U.S. tariffs could “be a gift to Beijing” and strain alliances needed to counter China’s leverage.