Push and Pull: The US Strategy to Reduce Reliance on Chinese Critical Minerals

US President Donald Trump has signed an executive order aimed at making it more difficult for government contractors to obtain waivers allowing them to purchase critical minerals and other strategic materials from China. The measure represents another step in the administration's broader effort to strengthen domestic supply chains and reduce dependence on Chinese imports.

According to Eric Robinson, Special Counsel at Baker Botts, the strategy creates what he describes as a "push and pull" effect. On one hand, the administration is applying political and regulatory pressure to reduce reliance on foreign suppliers. On the other, it is encouraging investment and market stability by supporting alternative sources of critical minerals.

This approach is backed by significant government investment. The US Department of Defense has committed funding to domestic producers, including MP Materials and USA Rare Earth, to help expand American production capacity. At the same time, the administration has worked through diplomatic channels to encourage pricing mechanisms that support long-term investment in domestic mining and processing.

The urgency of these efforts increased following two rounds of Chinese export controls on rare earth elements. Although those restrictions have been temporarily suspended until later this year, they highlighted the vulnerability of global supply chains for materials that are essential to modern industry.

Robinson noted that recent events have exposed how fragile highly efficient global supply networks can become. Critical minerals are vital components in a wide range of products, from electric vehicles and consumer electronics to advanced defence systems and guided missiles. As access to these materials has become less certain, governments have placed greater emphasis on securing reliable domestic and allied sources.

The renewed focus on critical minerals over the past 18 months reflects growing recognition that supply chain resilience is now considered a strategic priority, not only for economic security but also for national defence and technological competitiveness.

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