China Centralizes Overseas Mining Investments, Strengthens Domestic Resource Management

China is implementing a comprehensive strategy to consolidate the management of its natural resources, extending state control from domestic assets to overseas mining investments. This initiative aims to enhance economic security in response to escalating global tensions surrounding critical minerals, such as rare earths, and vital energy resources.

The State Council released an opinion on July 13 outlining plans to establish a unified management system for natural resource assets by 2030. This system will encompass ownership, usage, distribution, revenue, and supervision of all natural resources, including land, minerals, forests, grasslands, wetlands, water, oceans, underground spaces, and uninhabited islands. The government intends to conduct unified surveys and registrations to clarify resource volumes and property boundaries, separating state ownership from actual usage rights.

This consolidation is interpreted as an effort to formalize the management of resources that have historically had unclear lines of authority and responsibility between central and local governments, as well as various ministries. Beyond environmental protection, the measures are designed to prevent opaque resource disposal by local governments and state-owned entities, and to curb the illicit outflow of state assets. Rights such as mining, sea use, and water use will be allocated through competitive bidding or leasing, with all related revenues to be incorporated into the government budget.

In parallel, China is strengthening its oversight of overseas mineral supply chains. Guangyan International Investment, led by the National Development and Reform Commission, was recently established to invest directly in overseas mining projects undertaken by Chinese companies. The firm will also provide consultation on regulatory compliance, market conditions, and political and business risks. It is reportedly guiding Chinese firms to diversify investment risks by sharing stakes with other investors rather than pursuing sole acquisitions.

This intensified resource control is also reflected in trade data. China's rare earth exports in June decreased by 34.1% year-on-year to 5,104.8 tons. Exports for the first half of the year also fell by 6.4% to 30,482.8 tons compared to the previous year. This decline is attributed to prolonged export licensing procedures and strengthened controls.