Economy

Africa: The Game-Changer in the US-China Chip Rivalry

While China dominates rare earth metal production, the global semiconductor race may hinge upon who secures Africa’s resources, says veteran Asia-Pacific affairs expert Thomas Pauken II.
Sputnik

Africa’s Rare Earth Wealth

Rare earths are 17 metallic elements essential for electronics, renewable energy and military technology.
Africa holds an estimated 15% of the world’s rare earth reserves.
By 2029, African mines are expected to supply 10% of global rare earth output, Benchmark Mineral Intelligence reports.
Tanzania, Angola, South Africa, Malawi, and Uganda are key sources, with ongoing exploration projects.
About 37% of Africa’s future supply is destined for Chinese companies, while 63% will be carved up between American, European and other players.

China’s Advantage and the Race for Africa

China controls about 70% of global rare earth mineral output and supply chains, giving it leverage over US chipmakers. Prices surge whenever Beijing imposes export restrictions.
In early February, China introduced new controls on five critical minerals in response to the Trump administration's 10% tariffs on Chinese imports.
"Right now, China has a firm foothold in many African countries through the Belt and Road Initiative (BRI)," Pauken notes.
But with Washington prioritizing rare earths and AI, US President Donald Trump may counter Beijing by offering African nations better mining deals and tariff benefits, according to the expert.
Trump is already challenging the BRI by boosting alternative initiatives like the India-Middle East Economic Corridor (IMEC) and the I2U2 (India-Israel, US-UAE) partnership.
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