US House Blames China for Minerals Market Manipulation
Source: Global Finance News
Reporter: MD Rubel Isla
Published: Nov 14, 2025 — 10:50 PM (GMT+6)
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| US House report alleges China manipulates rare earth and lithium prices, impacting US economy, national security, and supply chains. |
Main Point
- Allegations Against China
The U.S. House Select Committeeon China has released a report accusing China of manipulating the critical minerals market, including rare earths and lithium, for decades. According to the report, Beijing has used its dominance as an economic weapon to strengthen its manufacturing sector and expand its geopolitical influence. The manipulation of market prices has made it challenging for the U.S. and its allies to determine true mineral values, affecting global trade stability.
- Impact on the U.S. and Global Markets
China’s control over critical minerals has significant consequences for U.S. national security and the manufacturing sector. American companies face higher costs, reduced competitiveness, and job losses due to price instability. The report also highlights concerns over the London Metal Exchange (LME), suggesting that Chinese oversight could distort global pricing and supply chains. Export controls imposed by the PRC government further complicate access to essential resources.
- Policy Recommendations and Future Actions
The bipartisan report provides several policy recommendations to secure U.S. interests, including:
Implementing price controls on critical minerals
Expanding government oversight on pricing agencies
Creating a U.S. minerals stockpile
Appointing a “critical minerals czar”
Both Trump and Biden administrations have taken steps to reduce U.S. dependency on China. The report emphasizes a multi-faceted approach to protect national security, stabilize the critical minerals market, and maintain technological leadership.
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US House Report Accuses China of Minerals Market Interference
China’s Dominance in Critical Minerals
China has long been a global leader in critical minerals, especially rare earths and lithium. These minerals are essential for advanced technologies, including electric vehicles, smartphones, and military applications. The U.S. House Select Committee on China reports that Beijing has used its dominance as an economic weapon, influencing prices and controlling the global supply chain to expand its geopolitical influence.
Impact on the U.S. Manufacturing Sector
The manipulation of minerals pricing by China has significant consequences for the U.S. manufacturing sector. American companies face higher costs and uncertainty, which can result in job losses and reduced competitiveness. Congressman John Moolenaar highlighted that China’s policies have directly jeopardized national security by limiting access to critical resources needed for defense and technology.
Allegations of Price Manipulation and Market Interference
The House report alleges that China has intentionally raised and lowered prices of lithium and rare earths to strengthen its economy. According to the report, every surge in lithium prices has been met with interventions from the PRC government to push prices back down. This creates instability in global markets and makes it difficult for the United States and its allies to accurately assess true market pricing.
The Role of the London Metal Exchange (LME)
The report also scrutinizes the London Metal Exchange, a key trading platform for critical minerals. Owned by Hong Kong Exchanges and Clearing, the LME is allegedly susceptible to influence from Beijing. While the LME maintains that its prices reflect transparent trading activity, the committee cautions that Chinese oversight could distort global supply and pricing data.
US Court Halts Citgo Bids
Amidst these tensions in the minerals market, the US Court has halted Citgo bids, highlighting how legal and regulatory interventions in the U.S. can affect international corporate and commodity strategies. This move underscores the interconnected nature of global markets and the importance of careful oversight, especially when foreign influence intersects with critical resources and national interests.
Policy Recommendations from the U.S. House Committee
The bipartisan report includes 13 policy recommendations aimed at securing U.S. interests in the critical minerals sector:
Implementation of minerals price controls.
Expansion of government oversight over price reporting agencies.
Creation of a U.S. minerals stockpile to prevent supply shortages.
Appointment of a “critical minerals czar,” a role already introduced under former President Trump.
Strengthening supply chain transparency to reduce reliance on China.
The committee emphasizes that no single policy can address these challenges alone; a multi-faceted approach is necessary to safeguard national security and economic stability.
Bipartisan Consensus
The report received support from both Republican and Democratic members of the committee, including Congressman Raja Krishnamoorthi. This demonstrates a shared concern in Congress over China’s influence in the global minerals market and the urgent need for U.S. policy interventions.
The Global Geopolitical Implications
China’s dominance over critical minerals has far-reaching geopolitical consequences. By controlling rare earths and lithium production, Beijing wields significant influence over global manufacturing, technology development, and even military capabilities. The report warns that the U.S. must act decisively to counterbalance this influence and protect its economic and national security interests.
China’s Response
The Chinese Embassy in Washington dismissed the report, stating that there is “nothing credible” about the committee’s findings. Spokesperson Liu Pengyu emphasized China’s commitment to maintaining stability in global supply chains and encouraged U.S. politicians to pursue mutual cooperation instead of confrontation.
Looking Ahead – Securing U.S. Mineral Independence
As the U.S. confronts China’s market manipulation, policymakers are exploring strategies to reduce dependency on foreign sources of critical minerals. Initiatives include domestic mining expansion, investing in recycling technologies, and strengthening alliances with other mineral-rich countries. These measures aim to ensure that the United States maintains competitive pricing, secure supply chains, and technological leadership.
Conclusion
The US House report underscores the urgent need for America to secure its position in the global critical minerals market. With China leveraging rare earths and lithium as both economic and geopolitical tools, U.S. policymakers are advocating a combination of stockpiling, price controls, and legislative action to protect national interests. By implementing these strategies, the United States aims to reduce vulnerability, strengthen the manufacturing sector, and safeguard national security whi
le promoting a fair and transparent minerals market globally.
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