G7 finance ministers have agreed to increase cooperation with resource-rich countries and multilateral development banks to reduce dependence on Chinese critical minerals.
The agreement was reached in a meeting in Washington with partner countries and mineral producers, including Indonesia, India, Australia, and Argentina.
"We discussed strengthening the supply chain of critical minerals. This is a win-win situation because supplies can be secured from various countries," said Japanese Finance Minister Satsuki Katayama, reported by ANTARA from Kyodo, Sunday, April 19.
He added that the cooperation opens up new business opportunities and growth for resource-producing countries.
"Given the potential for collaboration, I believe this has significant prospects," he said.
The meeting, which was jointly chaired by France and Japan, was also attended by the heads of the World Bank and the Asian Development Bank (ADB).
A Japanese official said the initiative aims to diversify supply chains and reduce excessive global dependence on China.
Unlike the US proposal to establish a "preferential trade zone", the French approach is considered more realistic because it focuses on mutually beneficial business projects.
China currently mines about 70 percent of the world's rare earths, 90 percent of which are refined. The minerals are needed in high-tech industries.
Katayama stressed the importance of reducing dependence on China, which he valued as being able to utilize critical mineral supplies as a "weapon."
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