China's Li inspects rare earth facilities, hints at leverage in US rivalry

BEIJING, Feb 11 (Reuters) – China's second-ranking official, Premier Li Qiang,inspected rare earth facilities in the southern province of Jiangxi on Tuesday, state news agency Xinhua reported, using the visit to hint at intensifying competition with the U.S. over strategic minerals. Such pre‑holiday inspections are traditionally moments for China's top leadership to telegraph policy direction before Lunar New Year festivities begin. Wednesday's readout subtly pointed to how access to components essential to everything from autos to smartphones has become one of Beijing's most potent bargaining chips in negotiations with Washington. Rare earths are also key to the manufacture of weapons. "The important value of rare earths in developing advanced manufacturing and promoting green and low-carbon transformation is becoming increasingly prominent," Li was quoted as saying, a veiled reference to the turmoil manufacturers were plunged into last year when China abruptly tightened rare earth export controls after Washington further restricted Chinese investment in the U.S. "It is necessary to promote the deep integration of industry, academia, research and application, (and) expand the application of rare earth technology," Li added. Analysts say the U.S. and China face a contest to guarantee long-term access to the critical minerals, one that could see Beijing gain a new foothold in global corporate decision-making should it follow through and introduce legislation requiring companies using even trace amounts of Chinese rare earths to report their intentions to its commerce ministry. Li did not directly mention the U.S. in his recorded remarks. He visited a research institute under the Chinese Academy of Sciences think tank, the report added, along with several unnamed enterprises in the rare earth production line. U.S. Vice President JD Vance last week unveiled plans to marshal allies into a preferential trade bloc for critical minerals, proposing coordinated price floors as Washington escalates efforts. (Reporting by Joe Cash; Editing by Chris Reese and Lincoln Feast.)

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