Understanding China's role in developing Australia’s critical minerals sector

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CRITICAL FACTS, CRITICAL MINERALS AND CHINA: WHAT AUSTRALIANS NEED TO KNOW

As the Australian federal government implements its critical minerals strategy, the Australia China Business Council together with the Australia-China Relations Institute at the University of Technology Sydney (UTS:ACRI) have embarked on releasing Critical facts, critical minerals and China: What Australians need to know – a series of thought leadership analysis pieces around China's historical and potential future involvement in Australia's critical minerals and rare earths sectors.

Aside from China being a major market, it is not well known that whether it be through foreign investment, labour up-skilling or technology transfer, Chinese companies have played a crucial role in Australia's emergence in the critical minerals and rare earths sector. With China's booming green economy, the demand for such resources and interest in partnering with Australia is likely to continue and to increase. However, there have been questions raised in the Australian national debate as to whether Chinese interests are welcome in the sector. This series of analysis pieces explores and unpacks some of the history and facts that are required to have a wholistic understanding of what an ongoing presence or lack thereof of Chinese involvement in the sector is likely to mean for Australia.

The views and opinions expressed are those of the authors and do not necessarily reflect the official policy or views of the ACBC. UTS:ACRI also does not take an institutional position on any issue.

Critical Insight 2. Understanding China's role in developing Australia’s critical minerals sector

The need to bolster the resilience and sophistication of the critical minerals sector is and should be at the forefront of Australian policy-makers' attention. But a strategy for developing the sector based solely on a zero-sum geopolitical frame that excludes the PRC will not lead to success. It would fail to recognise the role that patient Chinese capital and world-leading technology has played in developing Australia’s critical minerals sector to date – and the economic reality that the PRC is now leading the clean energy transition globally. And even Australia’s closest geopolitical friends have an incentive to attract value-adding activities to their own jurisdictions, potentially at Australia’s expense.

Authors

Professor James Laurenceson, Director, Australia-China Relations Institute, University of Technology Sydney

Dr Marina Zhang is Associate Professor – Research at the Australia-China Relations Institute, University of Technology Sydney.