Flipping the Table, Seizing Turf, and Setting New Rules: Why Have Countries Worldwide Suddenly Joined Forces to Target Chinese Mining Companies?

Recently, countries have abruptly 'turned hostile'—but the underlying logic is actually quite straightforward: a volatile mix of interests, power struggles, and anxiety. Resource-rich countries seek greater autonomy—not content merely to mine and export raw materials for foreign exchange, they now aim to retain downstream processing and value-added activities domestically. Meanwhile, Western nations fear China’s dominance over critical mineral processing; thus, they simultaneously pursue 'de-China' supply-chain initiatives within exclusive blocs and stoke discord in Africa. Tactics have grown increasingly aggressive: from imposing tariffs to outright strangulation—restricting product purity standards, seizing assets, enforcing monopolies, and even invoking Cold War-era legislation to seize Chinese-invested enterprises. In essence, the world is transitioning from the oil era to the critical-minerals era: whoever controls lithium, cobalt, and rare earth elements holds the lifeline of new-energy technologies and AI. The West suffers from acute supply-chain anxiety, while resource-rich countries aim to capitalize on soaring commodity prices. For Chinese enterprises, this painful lesson has come at great cost—but it is worth it. In the past, companies simply poured money into acquiring mines, often neglecting penalty clauses or international arbitration safeguards in contracts. Only now do they realize that possessing resources alone is insufficient—technological capability and rule-making authority must also be firmly secured. The state has also stepped in: new regulations strengthening national-security reviews and countermeasures for overseas investments will take effect in July 2026.

What Challenges Do Chinese Enterprises Face When Investing in Africa?

After investing $5 billion to build a factory, a Chinese enterprise realized the most dangerous thing could not be moved at all. China has just granted zero-tariff treatment to 53 of the world’s least-developed countries—including many across Africa. Logically, this should herald a golden era of mutually beneficial trade and smooth flow of goods. Yet over the past year, another storm has been quietly brewing across the African continent: Zimbabwe has banned lithium exports; the Democratic Republic of the Congo (DRC) is pressuring foreign investors to build local refining facilities; Namibia has restricted raw-ore exports. These countries no longer merely want higher prices for their minerals—they want something else entirely. On the surface, this is called 'resource protection.' Indonesia did it with nickel; Saudi Arabia did it with oil. But when the entire African continent begins acting collectively, this is no longer the temporary whim of one or two nations. Over the past two years, numerous African resource-rich countries have almost simultaneously tightened their mining policies: restricting raw-ore exports, mandating local processing, and demanding higher domestic value addition. Although specific implementation paths may differ, their shared objective grows ever clearer—to anchor the entire industrial chain within their own borders.

Zhang Hongli: Chinese Mining Firms Face New Overseas Challenges

2 hours ago

Zhang Hongli noted at the Caixin Summit that Chinese mining firms face rising compliance hurdles overseas, driven by tighter export policies in resource nations and stricter Western regulations on conflict minerals and battery supply chains.

caixin

2026-11-13

Zhang Hongli: Chinese Mining Firms Face New Overseas Challenges

Zhang Hongli: Chinese Mining Firms Face New Overseas Challenges

FAQ