Original Report: www.globaltimes.cn(full story)
- The US is striving to detach its supply chains from China, particularly in lithium production, posing risks to global industry.
- Allegations from US officials claim excess lithium supply undermines competition, but this raises questions amidst parallel US efforts to boost its production.
The United States has embarked on a mission to disentangle itself from its industrial and supply chain relationships with China, particularly in regards to vital minerals like lithium. This endeavor risks fragmentation and inefficiencies in global supply chains.
US Department of State Under Secretary Jose Fernandez recently asserted that China is producing an excess of lithium, creating a “predatory” price drop intended to eliminate rival projects. Such claims are difficult to reconcile with the US’s own ramped-up lithium production efforts, revealing the fierce competition in the lithium sector.
Lithium, crucial for new-energy vehicles and energy storage, holds substantial economic value. Thanks to its vast resources and robust manufacturing capabilities, China has established a dominant presence in the global lithium market, from extraction to battery application.
Chinese producers are effectively building their own pricing mechanism, factoring in production costs and market demands, particularly in light of their trade relations with the US and other Western nations. In an effort to counter China, the US and its allies are attempting to form a “small circle” supply chain, which reveals inherent contradictions—while aiming to strengthen their economic security, they remain heavily reliant on Chinese resources.
This approach not only highlights the challenges in creating a competitive supply chain but also risks exacerbating tensions in economic relations. The global industrial chain thrives on interdependence and cooperation, and any unilateral disruptions could severely damage economies both domestically and worldwide.
Ultimately, the US’s strategy to create an alliance against China may undermine the coherence of global supply chains, leading to inefficiencies and resource wastage. Consequently, the US and its allies may find themselves grappling with self-sufficiency dilemmas, unable to meet their demands for high-tech products.
