What lies beneath

Beijing is putting mineral resource security ahead of environmental concerns.

The latest: On January 3, the national legislature (NPCSC) released the draft revision of the Mineral Resources Law for public comment.

The amended text puts domestic mineral resources at the heart of economic security.

• Minerals like nickel, lithium, and rare earth elements feed China's most critical high-tech industries – from tech and defense, to energy and transportation.

To safeguard these sectors, the law calls for massive expansion of domestic resource extraction.

• That includes the promise of government support for new exploration and development.

Some context: China is the world's top processor of many critical minerals, but remains largely dependent on raw material imports.

• Extracting more at home would leave China's economy less vulnerable to foreign supply shocks, such as tariffs and export controls.

There's a big problem, though: Environmental costs.

• While the draft revision adds a section on ecological restoration, it lacks any meaningful measures on environmental protection.
• The revision also doesn't mention the "green development concept," which is supposed to be an integral part of China's industrial upgrading strategy.

Get smart: Global mineral resource competition will continue ramping up, driving China to de-prioritize environmental considerations.