In a recent government meeting, U.S. officials expressed growing concerns over China's increasing influence and control over critical minerals, which are essential for various industries, including technology and defense. Representative Selfe from Texas highlighted alarming statistics indicating that the European Union relies heavily on China for these resources, with 98% of rare earths, 93% of magnesium, and 97% of lithium sourced from the country. This dependency raises fears of potential economic leverage or \"blackmail\" by China, particularly in light of geopolitical tensions.

The discussion also touched on the implications of the ongoing conflict in Ukraine, with experts suggesting that Russia's strategy may involve targeting Ukrainian critical infrastructure to exacerbate energy shortages in Europe. In response, the EU has initiated a Critical Raw Materials Act aimed at reducing reliance on Chinese imports by 2030, but the effectiveness of this plan remains uncertain.

Officials noted that China's recent export controls on materials like germanium and gallium—crucial for semiconductor production—have already led to significant price increases, further complicating the situation for European economies. The meeting underscored the need for a coordinated transatlantic response to mitigate these risks and enhance resource security.

Amid these discussions, there were also reflections on China's economic challenges, including demographic issues and a potential deflationary cycle, which could have broader implications for global markets. While some experts view China's weakening economic position as a potential advantage for Western countries, they cautioned that the interconnectedness of global economies necessitates careful policy considerations.

Overall, the meeting highlighted the urgent need for strategic planning and collaboration to address the vulnerabilities posed by China's dominance in critical mineral supply chains.