Chinese Premier Pushes Rare Earth Dominance and AI Innovation Amid US
Rivalry
Premier Li Qiang called for China to
consolidate its lead in industries like rare earths, where Beijing has a
strategic edge over Washington
1.
Strategic Visit to Ganzhou
Chinese Premier Li Qiang visited Ganzhou in Jiangxi province, a major
global hub for heavy rare earth production.
2.
Focus on Rare Earth Advantage
Li emphasized consolidating China’s dominance in rare earth mining and
processing, calling it a strategic edge over the United States in trade and
technology disputes.
3.
Role in Advanced Manufacturing
Rare earths were highlighted as crucial for advanced manufacturing, green
energy, and low-carbon transformation.
4.
Engagement with Research Institutions
Li toured the Chinese Academy of Sciences’ Ganjiang
Innovation Academy and met local business leaders and researchers.
5.
US Countermeasures Intensify
The United States is seeking to reduce reliance on China by forming critical
mineral alliances and launching “Project Vault,” a $12 billion commercial
stockpile initiative.
6.
Mineral Supply Partnerships
Washington has signed mineral agreements with countries such as Australia,
Malaysia, and Thailand to diversify supply chains.
7.
AI Development Drive
Li chaired a State Council meeting focused on accelerating artificial
intelligence development across industries.
8.
Strengthening AI Capabilities
He called for advances in algorithms, large language models, high-quality data
supply, and computing power, aiming for breakthroughs across the full AI value
chain.
9.
SOE Investment in Computing Power
State-owned enterprises were urged to increase investment in computing
infrastructure under a “computing power plus electricity” strategy.
10.
Context of Tech Competition
The push follows global attention on Chinese AI progress after start-up DeepSeek
launched an advanced AI model despite US technology restrictions.
11.
Upcoming Policy Announcements
The initiatives come ahead of China’s annual “two sessions,” where Beijing will
unveil its 15th five-year plan and set 2026 economic targets.
12.
Growth Outlook
Officials are expected to target GDP growth of 4.5%–5% for the coming year,
after achieving 5% growth last year.
China’s
premier has vowed the country will consolidate its advantages in traditional industries
like rare earths while also striving to accelerate innovation in frontier technologies
such as artificial intelligence, as Beijing prepares to unveil its latest five-year
plan.
Premier
Li Qiang made the call during a visit earlier this week to Ganzhou in the central
Chinese province of Jiangxi – one of the world’s largest production bases for heavy
rare earth elements, a strategic resource essential to a range of hi-tech industries.
China’s
dominance of global mining and processing of the minerals has become a crucial strategic
advantage in recent years, giving it vital leverage when sparring with the United
States over a string of trade and technology disputes.
Li’s
trip included a visit to the Chinese Academy of Sciences’ Ganjiang
Innovation Academy, tours of critical mineral producers, and a meeting with local
business leaders and researchers, Xinhua reported.
“The
value of rare earths in boosting advanced manufacturing and green, low-carbon transformation
is increasingly prominent,” he said.
The
visit comes as the US intensifies efforts to break China’s chokehold over access
to rare earths, after a slew of major Western firms faced supply disruptions amid
the US-China trade war last year.
Earlier
this month, Washington hosted a gathering of more than 50 countries to discuss forming
a bloc for supplies of critical minerals including rare earths – a move widely seen
as an attempt to loosen China’s control over the industry.
The
US has also signed mineral deals with countries including Australia, Malaysia and
Thailand in recent months and outlined a US$12 billion plan, dubbed Project Vault,
to create a commercial stockpile of critical minerals.
In
Ganzhou, Li signalled the importance of solidifying China’s competitiveness in traditional
industries to spur on technological innovation, calling for expanding the application
of rare earths in fields like green energy and new materials.
On
Wednesday, Li also chaired a meeting of the State Council, China’s cabinet, on harnessing
artificial intelligence to empower other industries, which featured a lecture by
the head of the Shanghai Artificial Intelligence Laboratory. Vice-Premiers Ding
Xuexiang and Zhang Guoqing also attended.
Li
urged policymakers to deepen their grasp of AI development trends and advance innovations
in algorithms and large language models, increase China’s supply of high-quality
data and computing power, and proactively explore new technological pathways. He
said the goal was to make breakthroughs across the entire AI chain, Xinhua reported.
“We
must cultivate an ecosystem forming synergy from data, computing, electricity, network
resources, and software and hardware,” the premier said. “We must promote open cooperation,
expand international exchanges while enhancing ethical guidelines and security guarantees.”
The
study session is among the latest efforts by China’s top leadership to further develop
and apply AI, which came about a year after the Chinese start-up DeepSeek shocked
the world by rolling out a cutting-edge model despite facing US tech curbs.
The
State Council also urged state-owned enterprises to expand investment in computing
power as part of a “computing power plus electricity” push aimed at providing a
solid foundation for the country’s AI development.
Li’s
inspection tour and AI session came ahead of an important period for China’s leaders,
with the “two sessions” – the annual meetings of the country’s top legislative and
consultative bodies – set to be held in early March.
Beijing
is set to release its 15th five-year plan during the gatherings, as well as its
economic goals for 2026 – including its growth target.
Officials
are expected to aim for an increase in gross domestic product of between 4.5 per
cent and 5 per cent this year, according to sources briefed on the matter, after
the economy hit last year’s target of 5 per cent growth.