Chinese Premier Li Qiang tours rare earth mine, signaling strategic competition with US

BEIJING – Chinese Premier Li Qiang inspected rare earth facilities in Jiangxi province this week, a move state media and analysts describe as a signal of Beijing’s intensifying competition with the United States over strategic minerals.

The visit, reported by the state-run Xinhua News Agency, follows a tradition of top Chinese leaders conducting inspections ahead of the Lunar New Year to signal upcoming policy shifts. The trip highlights how Beijing views its control over minerals essential for smartphones, electric vehicles, and advanced weaponry as a primary bargaining chip in its trade disputes with Washington.

During the tour, Li emphasized that the importance of rare earths is becoming "increasingly prominent" for advanced manufacturing and the global transition to green energy.

While Li did not mention the U.S. by name, his remarks are widely seen as a reference to China’s decision to tighten export controls on the minerals last year. Those restrictions were implemented after Washington restricted Chinese investment in American technology sectors.

The high-profile inspection comes as the U.S. moves to reduce its reliance on Chinese supply chains. U.S. Vice President JD Vance recently announced a plan to organize allies into a preferential trade bloc specifically for critical minerals.

Premier Li Qiang’s recent visit to Jiangxi—China’s strategic rare earth hub—was far from a routine state appearance. Scheduled just ahead of the Lunar New Year, the trip serves as a pointed policy signal to Washington. Beijing is signaling a renewed readiness to weaponize its dominance over the global rare earth supply chain, positioning these critical minerals as a direct counterweight to U.S.-led restrictions on advanced semiconductors and high-tech exports.

This move underscores a broader strategy to leverage critical resources in the deepening economic confrontation between the world's two largest powers. By tightening oversight—including potential mandates for firms to disclose even marginal rare earth usage—Beijing is asserting unprecedented control over the global manufacturing ecosystem. This exerts direct pressure on Western industrial pillars, ranging from electric vehicle production and consumer electronics to sensitive defense applications.

Washington has signaled it is acutely aware of this vulnerability. Vice President Vance’s proposal for a "mineral alliance" reflects an urgent effort to build alternative, resilient supply chains that operate independently of Chinese influence. This intensifying rivalry is poised to redraw the map of global trade and investment flows. It also creates a strategic opening for resource-rich nations such as Vietnam, which is increasingly positioned to attract capital from multinational corporations looking to "de-risk" their operations and diversify away from the Chinese market.

The U.S.-China competition over rare earth minerals doesn’t have a direct impact on the small businesses that anchor our community, from the phở restaurants in Little Saigon to the nail salon industry. However, if these tensions escalate and disrupt global supply chains, the rising cost of consumer electronics like smartphones and laptops will be felt by everyone. While many in the community are focused on the nuances of F2B or H-1B visa processing, or the consistency of remittances and EB-5 investments, these broader trade wars will eventually hit the pocketbooks of all Vietnamese-American consumers.