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US Critical Mineral Policies and Alliance Strategies in an Age of Geopolitical Rivalry

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  • Anastasia Ufimtseva

    (Beedie School of Business, Simon Fraser University, Canada)

  • Jing Li

    (Beedie School of Business, Simon Fraser University, Canada)

  • Daniel M. Shapiro

    (Beedie School of Business, Simon Fraser University, Canada)

Abstract

We examine the geoeconomic strategies of the US regarding critical minerals through the lens of geopolitical rivalry with China. Chinese companies, mostly state-owned enterprises, play a prominent role in the extraction and processing of minerals critical to the energy transition. Drawing on the balance of power theory, we argue that the US, the incumbent hegemon, can employ both domestic policies and alliance-building strategies to counterbalance China’s dominance in critical mineral sectors. Empirically, we first assess the nature of US domestic policies with respect to promoting domestic critical mineral production and restricting foreign investment in the extractive sectors through investment screening measures, and then assess the degree to which the US has relied on Five Eyes alliance partners to achieve common strategic goals. We find evidence that the US uses a multifaceted geoeconomic approach involving domestic policies and alliance strategies to counterbalance China’s dominant position in critical mineral supply chains.

Suggested Citation

  • Anastasia Ufimtseva & Jing Li & Daniel M. Shapiro, 2024. "US Critical Mineral Policies and Alliance Strategies in an Age of Geopolitical Rivalry," Politics and Governance, Cogitatio Press, vol. 12.
    • Handle: RePEc:cog:poango:v12:y:2024:a:8186
    DOI: 10.17645/pag.8186
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    References listed on IDEAS

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    4. Ugo Bardi & Rolf Jakobi & Hiroshan Hettiarachchi, 2016. "Mineral Resource Depletion: A Coming Age of Stockpiling?," Biophysical Economics and Resource Quality, Springer, vol. 1(1), pages 1-9, August.
    5. Jing Li & Daniel Shapiro & Anastasia Ufimtseva, 2024. "Regulating inbound foreign direct investment in a world of hegemonic rivalry: the evolution and diffusion of US policy," Journal of International Business Policy, Palgrave Macmillan, vol. 7(2), pages 147-165, June.
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