How is China’s dominance overseas in metals progressing?
China's overseas investment in metals for industry and green technologies could reach $17 billion in 2023. Beijing wants to tighten its grip on the energy transition
China's investment in overseas metals and mining is expected to reach a record high in 2023. In fact, according to a report by the Fudan University of Shanghai examined by the Financial Times , investments amounted to 10 billion dollars in the first half of the year, more than the whole of 2022. By the end of 2023 they could therefore reach 17 billion, equaling the record figure of 2018.
CHINA DOMINATES METALS FOR CLEAN ENERGY
Investments in mines and metals – lithium, nickel, copper, uranium, iron, steel… – serve China to maintain its dominant position on clean energy technology chains: the country is clearly the world's largest producer of panels solar , batteries , electric cars and wind turbines, all devices necessary for the ecological and metal- intensive transition.
ECONOMIC SECURITY
The investments also serve Beijing to guarantee itself long-term access to new critical raw materials and thus strengthen its economic self-sufficiency (and security) in the face of growing geopolitical tensions with the United States.
THE ROLE OF THE BELT AND ROAD INITIATIVE
The race for supplies is encouraged by President Xi Jinping and also implemented through the Belt and Road Initiative, the infrastructure program that aims both to expand China's international influence and to guarantee the flow of supplies towards national borders. Also known as BRI or New Silk Road, the Belt and Road Initiative was launched in 2013 by Xi and presented as an alternative to Western funding for infrastructure projects (roads, railways, ports, airports and more). 148 countries participate in the program ( including Italy ) and it contains projects with a cumulative value of 1,000 billion dollars.
“Overall,” explained Christoph Nedopil, a researcher at Fudan University, “China's engagement in the BRI seems to become more strategic, both in terms of economic and industrial aspects: more bankable projects relevant to China's industrial development and host countries".
A REDUCED PROJECT
In recent years, China has received various criticisms on the management of debts contracted by governments adhering to the BRI and on episodes of corruption linked to infrastructure projects: also for these reasons, the project has been scaled down and focused on raw materials. However, the contraction of BRI-related projects, usually carried out by state-owned companies, has been accompanied by an increase in investment by private companies.
In addition to hoarding foreign commodities , China is ramping up its refining industry for metals such as copper, aluminum, lithium and cobalt, to make itself even more self-sufficient.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/energia/cina-metalli-miniere-investimenti-record/ on Mon, 07 Aug 2023 04:56:25 +0000.