Q. Discuss the geopolitical implications of China’s ban on antimony exports for global supply chains. How should international trade agreements address the monopoly of certain countries over key mineral resources (15 Marks, 250 words)

Core Demand of the Question

  • Discuss the geopolitical implications of China’s ban on antimony exports for global supply chains.
  • Explain how international trade agreements should address the monopoly of certain countries over key mineral resources.

 

Answer:

China’s recent ban on antimony exports, a critical mineral vital for military and high-tech industries, has significant geopolitical implications. Antimony is essential for defence technologies like infrared flares and nuclear weapons. This decision highlights China’s increasing use of mineral dominance as a geopolitical tool, disrupting global supply chains and intensifying international competition over critical resources.

Geopolitical Implications of China’s Ban on Antimony Exports for Global Supply Chains:

  • Disruption in Military Supply Chains: Antimony is crucial for military equipment like missiles and infrared flares, making China’s ban a strategic move affecting defence production globally.
    For instance: The U.S. military’s reliance on antimony imports highlights its vulnerability, with China controlling over 70% of the world’s supply.
  • Increased Pressure on Western Economies: The ban will compel Western nations to rethink their dependence on Chinese minerals, prompting efforts to diversify their supply sources.
    For example: The European Union has prioritised securing alternate supplies of critical minerals to avoid reliance on China.
  • Impact on Renewable Energy: Antimony is vital in the production of solar cells and batteries, which are integral to renewable energy technologies, placing green energy transitions at risk.
    For instance: China’s move could hinder the production of electric vehicle batteries, disrupting global sustainability goals.
  • Strategic Leverage by China: By controlling critical mineral exports, China aims to strengthen its geopolitical influence and counter Western pressure in other sectors like technology.
    For instance: Similar export restrictions on rare earth elements were previously used to assert dominance in global trade.
  • Escalation of Trade Tensions: The export ban is likely to intensify trade wars between China and Western nations, especially as countries impose countermeasures to safeguard their industries.
  • Global Price Volatility: The restriction on antimony exports is expected to cause price fluctuations in global markets, increasing costs for industries relying on these minerals.

How International Trade Agreements Should Address Monopoly Over Key Mineral Resources:

  • Inclusion of Critical Mineral Provisions: International trade agreements should include provisions that encourage diversification of critical mineral sources, reducing reliance on one dominant supplier.
    For example: The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) includes clauses promoting mineral supply chain resilience.
  • Promoting Strategic Partnerships: Nations should foster partnerships through trade agreements to develop shared mineral extraction capabilities, ensuring a more equitable distribution of resources.
    For example: India’s partnership with  Lithium Triangle countries i.e. Argentina, Bolivia, and Chile aim to secure a reliable supply of lithium.
  • Establishing Resource Export Controls: Agreements should prevent countries from exploiting their dominance by placing unreasonable export restrictions on critical minerals, ensuring global supply chain stability.
    For example: The WTO could introduce mechanisms to regulate critical resource export bans that disrupt international trade.
  • Encouraging Domestic Production Incentives: Trade policies should encourage countries to invest in domestic mining and processing of critical minerals, reducing dependence on external sources.
  • Global Standards for Sustainable Mining: To balance environmental concerns with supply needs, international trade agreements should adopt sustainable mining practices for critical minerals.
    For instance: The International Council on Mining and Metals (ICMM) promotes environmentally responsible practices in mining operations.
  • Technology and Resource Sharing: Countries should collaborate on technology transfers related to mineral extraction and processing to ensure equitable access to critical resources.
    For example: Australia’s partnership with India focuses on technological cooperation in critical mineral extraction.
  • Building Regional Resource Hubs: Nations could create regional trade agreements that develop critical mineral hubs, ensuring diversified and secure supply chains across multiple nations.

China’s antimony export ban underscores the strategic importance of critical minerals in geopolitics. International trade agreements must address these monopolies by promoting diversification, sustainability, and strategic partnerships. By creating resilient global supply chains, countries can reduce their vulnerability and ensure the stable flow of essential resources while fostering geopolitical balance.

 

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