Western allies must subsidise resource projects to break China’s Monopoly, say economists

Economists are calling on Western allies, including the United States, to implement subsidies for resource projects as a strategic measure to challenge China's overwhelming control over the global battery and metal refining sectors.

Currently, China holds a dominant position, controlling between 70% and 90% of these crucial industries. This significant market share raises concerns about supply chain vulnerabilities and geopolitical leverage for Western nations.

Experts argue that viewing resource subsidization as a form of economic insurance is essential for the United States and its partners. Such a strategy aims to diversify supply chains and reduce reliance on a single dominant supplier, thereby enhancing economic security and resilience.

The call for subsidies highlights a growing recognition among policymakers and industry leaders that proactive investment in domestic or allied resource processing capabilities is necessary to mitigate risks associated with China's monopolistic influence.