China's Economic Hitman Policy and Strategic Control Over Raw Materials: The Key to Transitioning to Renewable Energy

The global transition to renewable energy hinges on the availability of critical raw materials such as lithium, cobalt, nickel, and rare earth elements. These resources power the batteries in electric vehicles (EVs), the magnets in wind turbines, and the semiconductors in solar panels. While many countries are racing to secure their energy future, China has already taken a significant lead through a calculated strategy of resource acquisition and geopolitical influence.

China’s Global Raw Material Strategy

China has been systematically securing access to the world’s most essential raw materials by forming strategic partnerships with countries in Africa, Latin America, Australia, and Canada. Through investments, infrastructure projects, and long-term trade agreements, China has positioned itself as the dominant force in the supply chain for renewable energy resources.

• Africa: The Democratic Republic of Congo (DRC) holds nearly 70% of the world’s cobalt reserves, a critical component of lithium-ion batteries. Chinese companies, often backed by state-owned enterprises, have acquired stakes in Congolese mines, ensuring a steady supply of cobalt.
• Latin America: The lithium triangle (Argentina, Bolivia, and Chile) holds over 50% of the world’s lithium reserves. China has established mining rights and supply contracts in these nations, securing its dominance in lithium production.
• Australia and Canada: While these countries are considered Western allies, China has successfully invested in their lithium and rare earth mining sectors, further diversifying its supply sources.

China’s Economic Hitman Policy

China's success in securing raw materials can be compared to the infamous "economic hitman" strategy, where financial investments and infrastructure deals are used to exert long-term control over resources. Unlike traditional colonialism, which relied on military intervention, China employs economic diplomacy, funding roads, ports, and power plants in exchange for mining rights. This model ensures China’s access to critical resources while making host countries dependent on Chinese investment.

For example, in Africa, Chinese-funded infrastructure projects have often been tied to mineral contracts, allowing China to extract resources at favorable terms. In Latin America, China has outpaced Western nations in securing lithium supplies through direct partnerships with governments and local companies. This influence extends beyond mining operations; through debt-trap diplomacy, China has gained leverage over many resource-rich nations, ensuring a long-term stranglehold on global supply chains.

China’s Control Over Global Supply Chains

China’s grip over the supply of raw materials is reinforced by its dominance in processing and refining these critical elements. Even if raw materials are mined elsewhere, they often need to be sent to China for processing before they can be used in advanced technologies. This dependency gives China an unparalleled advantage, allowing it to influence global pricing, dictate supply flows, and exert political pressure through resource control.

While Western nations are attempting to counter this dominance, they face significant challenges. China's vertically integrated approach—from mining to refining to manufacturing—ensures that alternative supply chains remain underdeveloped. The U.S. and Europe are only now starting to invest in domestic mining and refining capacities, but catching up with China’s decades-long lead will require significant effort and coordination.

The Future of Global Energy Supply Chains

China’s strategic control over raw materials places it at the forefront of the renewable energy revolution. As demand for green technology increases, China's grip on supply chains will give it substantial economic and geopolitical leverage. The question remains: will Western nations develop alternative strategies, or will China continue to dictate the future of renewable energy?

Conclusion

The race for renewable energy dominance is not just about technology—it’s about securing the raw materials that power the transition. China’s long-term investments and economic hitman policies have given it a near-monopoly on key resources, while Western nations are struggling to keep pace. If the world is serious about sustainable energy independence, it must rethink its approach to resource security before it’s too late.