Xi Jinping

United States President Donald Trump has announced the launch of a strategic minerals stockpile.

The stockpile, called Project Vault, was announced on Monday. It will combine $2bn of private capital with a $10bn loan from the US Export-Import Bank.

It is the latest move by the White House to invest in rare-earth minerals needed in the production of key goods, including semiconductor chips, smartphones and electric car batteries.

The aim is to “ensure that American businesses and workers are never harmed by any shortage”, Trump said at the White House.

The move to develop a strategic stockpile is the latest in a slew of efforts by the Trump administration to take control of the means of production for critical rare-earth materials to limit reliance on other countries, particularly China, which has held up its exports to gain leverage in negotiations with Trump.

Here’s a look at some of the investments the US government has made in this space.

What are the investments?

In 2025, the Trump administration acquired equity stakes in seven companies by converting federal grants into ownership positions. Among the investments is a 10 percent stake in USA Rare Earth, which plans to build rare-earth element and magnet production facilities in the US.

The project is supported by $1.6bn in funding allocated under the CHIPS Act, legislation passed during the administration of former Democratic President Joe Biden, aimed at reducing dependence on China for semiconductor manufacturing.

USA Rare Earth announced the investment last week and expects commercial production to begin in 2028.

The US government also acquired a roughly 10 percent stake, valued at about $1.9bn, in Korea Zinc to help fund a $7.4bn smelter in Tennessee through a joint venture controlled by the US government and unnamed US-based strategic investors, who would then control about 10 percent of the South Korean firm.

The venture will operate a mining complex anchored by two mines and the only operational zinc smelter in the US. Construction is set to begin this year, with commercial operations expected to start in 2029.

In October, the government announced a $35.6m investment to acquire a 10 percent stake in Canadian-based Trilogy Metals to support the Upper Kobuk Mineral Projects (UKMP) in Alaska. The investment backs the development of critical minerals, including copper, zinc, gold, and silver, in Alaska’s mineral-rich northwest Ambler mining district.

Also in October, the US announced a 5 percent stake in Lithium Americas as part of a joint venture with General Motors (GM) to fund operations at the Thacker Pass lithium mine in Nevada. The project will supply lithium for electric vehicles and has attracted significant interest from the Detroit-based automaker.

In August, the White House acquired an almost 10 percent stake in Intel. The government’s investment in the semiconductor chip giant was an effort to help fund the construction and expansion of the company’s domestic manufacturing capabilities.

In July, the White House announced a 15 percent investment in MP Materials, which operates the only currently active rare-earth mine in the US, located in California. The largest federal stakeholder in the investment is the Department of War, then called the Department of Defense, which committed $400m.

The US is also reportedly exploring an 8 percent share in Critical Minerals for a stake in the Tranbreez rare-earths deposit in Greenland, underscoring Trump’s unsolicited attempts to acquire the Danish self-governed territory, the Reuters news agency reported.

Amid news of Trump’s stockpile plan, sector stocks are mixed. MP Materials and Intel are up 0.6 percent and 5 percent, respectively. Others finished out the day trending downwards. Lithium Americas is down 2.2 percent. Trilogy metals is down almost 2 percent, USA Rare Earth is down by 1.3 percent, and Korean Zinc finished down 12.6 percent.

Is this unusual?

The government buying equity stakes in large companies is unusual in US history, but not unprecedented.

During the 2008 financial crisis, the US government temporarily acquired equity stakes in several major companies through the Troubled Asset Relief Programme (TARP). In 2009, TARP provided federal assistance to General Motors, ultimately leaving the government with a more than 60 percent ownership share. This intervention began in the final months of the administration of former President George W Bush. The government fully sold its stake in GM in 2013.

Through TARP, the government also acquired a 9.9 percent stake in Chrysler, which it exited in 2011.

The programme extended beyond car makers to the financial sector. The US government took a more than 73 percent stake in GMAC (General Motors Acceptance Corporation, now Ally Financial), exiting its ownership in 2014. It also acquired nearly 74 percent of the financial services insurance giant AIG, selling its remaining stake in 2012, and took a 34 percent stake in Citigroup, which it fully exited by 2010.

“This isn’t like 2008, when there was an urgent need to shore up critical companies. There’s a much more measured approach here. They [the US government] want these investments to generate returns, and they need to be seen as good investments in order to attract other forms of capital,” Nick Giles, senior equity research analyst at B Riley Securities, an investment banking and capital markets firm, told Al Jazeera.

During the Great Depression, the government bought stakes in several large banks. Before that, at the turn of the 20th century, it bought an equity stake in the Panama Railroad Company, which was responsible for building the railway that would be used during the construction of the Panama Canal. That equity stake was attached to a specific project rather than a more open-ended challenge, such as foreign dependence on critical minerals.

“There may not be a defined end date, but they’re clearly looking to make a return, and it sends an important signal that more is coming. I don’t think they [the government] are going to let this fail,” Giles added.

Political divide on the approach

Interest in providing funds to critical mineral projects was shared by Trump’s predecessor, Biden, who brought in the CHIPS Act for that purpose. Biden was focused on providing grants for projects rather than buying equity stakes.

Trump’s approach to buy stakes is actually more aligned with progressive Democrats than with members of his own party. Vermont Senator Bernie Sanders has long been a proponent of the US government buying equity stakes in companies.

In August, after the White House bought an equity stake in Intel, Sanders applauded the move.

“Taxpayers should not be providing billions of dollars in corporate welfare to large, profitable corporations like Intel without getting anything in return,” Sanders said at the time.

Kentucky Senator Rand Paul, a Republican known for his libertarian stances, called ownership a “terrible idea” and referred to it as a “step towards socialism” on CNBC. North Carolina’s Thom Tillis likened the Intel investment to something that countries like China or Russia would do.

For Babak Hafezi, professor of international business at the American University, the investments are a step to remove any reliance on China.

“Without domestic control and resiliency in both extraction and production, we are dependent on China, which extracts nearly 60 percent of global rare-earth minerals and produces 90 percent of it. This creates a major global chokepoint, and China can use this chokepoint as a means to dictate American Foreign policy via supply chain limitations,” he said.

“Thus, establishing free and open markets for US consumption is critical to remove any dependency.”

Jan. 30 (UPI) — Six British ministers of Parliament, including two peers, no longer are sanctioned by China, British Prime Minister Keir Starmer announced Friday.

Starmer confirmed the sanctions — imposed over criticisms of China’s treatment of its Muslim-minority Uyghur population — immediately were lifted amid warming relations between China and Britain. He made the announcement during a diplomatic trip to Beijing.

“I raised that issue whilst I was here,” Starmer said while interviewed in China. “The Chinese are absolutely clear in their response: The restrictions no longer apply.”

Chinese President Xi Jinping said all British members of Parliament were welcome in China, Starmer told the BBC.

The sanctions included a now-lifted travel ban. Starmer said their removal affirms the effectiveness of his diplomatic approach to the matter.

The prime minister also said he hopes Xi will attend the 2027 G20 summit scheduled to take place in Britain.

China imposed the sanctions on nine Britons, including five Conservative Party ministers and two members of the House of Lords, in 2021 after they raised concerns about human rights violations by China against Uyghurs, a Muslim population in northwest China.

China’s population is more than 90% Han, while Uyghurs account for less than 1% of its people.

The affected MPs and peers said they find “no comfort” in the lifting of sanctions.

Sanctions remain in place for others, and the ministers said they “will not be silenced” on the matter.

China has pressured foreign governments to forcibly return Uyghurs and others to China, “where they are subject to torture and enforced disappearances,” U.S. Secretary of State Marco Rubio said in March.

British Prime Minister Keir Starmer arrived in China this week with a large delegation of businesspeople and cultural figures.

He received a warm welcome from Chinese President Xi Jinping.

But the visit got a frosty reception from the White House, with United States President Donald Trump calling Starmer’s trip “dangerous”.

What prompted Trump’s remarks? And how important was the British prime minister’s visit?

Presenter: Adrian Finighan

Guests:

Will Hutton – Political economist

Andy Mok – Senior research fellow at the Center for China and Globalization

Steve Tsang – Director of the China Institute at SOAS University of London

Jan. 29 (UPI) — British Prime Minister Keir Starmer emerged from a meeting with Chinese President Xi Jinping in Beijing on Thursday to pronounce that ties between the two countries were back on track, with progress made on trade, tourism and business travel and disrupting illegal migration.

Speaking to reporters after his 80-minute meeting with Xi in the Great Hall of the People, the first by any British leader in eight years, Starmer said it was “very good, productive session with concrete outcomes” that represented a substantive advance.

“It was a real strengthening of the relationship and that’s in the national interest because, of course, there are huge opportunities here in China. A lot of the discussion was about how we open up access for those opportunities, focusing, as I always do, on how this is going to be delivered back in the United Kingdom, how does it benefit people back at home,” he said.

Starmer said headway had been made on Scottish whisky tariffs, visa-free travel to China for Britons and a border security deal on deporting illegal immigrants from Britain, tackling Chinese gangs producing synthetic opioids, and cutting off the flow of Chinese-made marine engines used by people smugglers moving migrants across the English Channel in small boats.

Starmer’s meeting with Xi ran for more than double the period of time scheduled for the talks.

Downing Street later confirmed British citizens would be permitted visits for tourism or business purposes of up to 30 days without a visa.

On issues where they did not see eye to eye, the two sides agreed to “maintain frank and open dialogue,” according to the readout from No. 10.

Starmer insisted he raised human rights at the meeting, including the treatment of the Uyghur minority in China and media mogul and democracy activist Jimmy Lai, a British citizen who has been in prison in Hong Kong since 2020 on sedition and other charges.

He said they had a “respectful discussion” and that his Chinese hosts had listened, with Starmer pointing out that the opportunity to raise “issues we disagree on” was part of the rationale for engagement.

Praising the contributions of past Labour governments to building Sino-British ties, Xi said that China stood ready to move beyond the “twist and turns” to develop a “long-term relationship” with Britain and “consistent, comprehensive, strategic partnership” that would benefit both peoples and the wider world.

However, no major deal or breakthrough came out of the meeting with the only agreement thus far a $20.7 billion investment in China through 2030 by U.K. pharma-giant AstraZeneca to expand its Chinese operation, particularly its work on anti-cancer cell therapy.

The Conservatives’ shadow national security minister, Alicia Kearns, who had urged Starmer to make the release of Lai and the lifting of sanctions on British MPs a condition of his visit, doubled down on her criticism.

“Keir Starmer’s visit tells the Chinese Communist Party they can carry on just as they are,” she wrote on X.

British PM Keir Starmer’s China visit is the first by a UK leader in eight years and marks a thaw in frosty relations.

The United Kingdom’s Prime Minister Keir Starmer has met with Chinese President Xi Jinping in Beijing in the first trip of its kind by a British leader in eight years.

Starmer said before his trip that doing business with China was the pragmatic choice and it was time for a “mature” relationship with the world’s second-largest economy.

“I have long been clear that the UK and China need a long-term, consistent and comprehensive strategic partnership,” Starmer said on Thursday.

During their meeting, Starmer told Xi that he hopes the two leaders can “identify opportunities to collaborate, but also allow a meaningful dialogue on areas where we disagree”.

Xi stressed the need for more “dialogue and cooperation” amid a “complex and intertwined” international situation.

The meeting between the two leaders in Beijing’s Great Hall of the People on Thursday was due to last about 40 minutes, and will be followed by another meeting between Starmer and Chinese Premier Li Qiang later in the day.

Starmer is in China for three days and is accompanied by a delegation representing nearly 50 UK businesses and cultural organisations, including HSBC, British Airways, AstraZeneca and GSK.

The last trip by a UK prime minister was in 2018, when Theresa May visited Beijing.

Strengthening economic and security cooperation was at the top of the agenda during the Xi-Starmer meeting, according to Al Jazeera correspondent Katrina Yu.

“[Starmer] has the very big task of bringing this diplomatic relationship out of years of deep freeze, so the focus when he talks to Xi Jinping will be finding areas of common ground,” Yu said from Beijing.

China was the UK’s fourth-largest trading partner in 2025, with bilateral trade worth $137bn, according to UK government data.

Starmer is seeking to deepen those ties with Xi despite criticism at home around China’s human rights record and its status as a potential national security threat.

Besides business dealings, Starmer and Xi are also expected to announce further cooperation in the area of law enforcement to reduce the trafficking of undocumented immigrants into the UK by criminal gangs.

Relations between the UK and China have been frosty since Beijing launched a political crackdown in Hong Kong, a former British colony, following months of antigovernment protests in 2019.

London has also criticised the prosecution in Hong Kong of the pro-democracy media tycoon Jimmy Lai, who is also a British citizen, on national security charges.

Starmer’s trip to China comes as both Beijing and London’s relationship with the United States is under strain from President Donald Trump’s tariff war.

Trump’s recent threats to annex Greenland have also raised alarm among NATO members, including the UK.

China is showcasing itself as a solid business and trading partner to traditional allies of the United States and others who have been alienated by President Donald Trump’s politics, and some of them appear ready for a reset.

Since the start of 2026, Chinese President Xi Jinping has received South Korean President Lee Jae Myung, Canadian Prime Minister Mark Carney, Finnish Prime Minister Petteri Orpo and Irish leader Micheal Martin.

This week, United Kingdom Prime Minister Keir Starmer is on a three-day visit to Beijing, while German Chancellor Friedrich Merz is expected to visit China for the first time in late February.

Among these visitors, five are treaty allies of the US, but all have been hit over the past year by the Trump administration’s “reciprocal” trade tariffs, as well as additional duties on key exports like steel, aluminium, autos and auto parts.

Canada, Finland, Germany and the UK found themselves in a NATO standoff with Trump this month over his desire to annex Greenland and threats that he would impose additional tariffs on eight European countries he said were standing in his way, including the UK and Finland. Trump has since backed down from this threat.

China’s renewed sales pitch

While China has long sought to present itself as a viable alternative to the post-war US-led international order, its sales pitch took on renewed energy at the World Economic Forum‘s (WEF) annual summit in Davos, Switzerland, earlier this month.

As Trump told world leaders that the US had become “the hottest country, anywhere in the world” thanks to surging investment and tariff revenues, and Europe would “do much better” to follow the US lead, Chinese Vice Premier Li Hefeng’s speech emphasised China’s ongoing support for multilateralism and free trade.

“While economic globalisation is not perfect and may cause some problems, we cannot completely reject it and retreat to self-imposed isolation,” Li said.

“The right approach should be, and can only be, to find solutions together through dialogue.”

Li also criticised the “unilateral acts and trade deals of certain countries” – a reference to Trump’s trade war – that “clearly violate the fundamental principles and principles of the [World Trade Organization] and severely impact the global economic and trade order”.

Li also told the WEF that “every country is entitled to defend its legitimate rights and interests”, a point that could be understood to apply as much to China’s claims over places like Taiwan as to Denmark’s dominion over Greenland.

“In many ways, China has chosen to cast itself in the role of a stable and responsible global actor in the midst of the disruption that we are seeing from the US. Reiterating its support for the United Nations system and global rules has often been quite enough to bolster China’s standing, especially among countries of the Global South,” Bjorn Cappelin, an analyst at the Swedish National China Centre, told Al Jazeera.

The West is listening

John Gong, a professor of economics at the University of International Business and Economics in Beijing, told Al Jazeera that the recent series of trips by European leaders to China shows that the Global North is listening, too. Other notable signs include the UK’s approval of a Chinese “mega embassy” in London, Gong said, and progress in a years-long trade dispute over Chinese exports of electric vehicles (EVs) to Europe.

Starmer is also expected to pursue more trade and investment deals with Beijing this week, according to UK media.

“A series of events happening in Europe seems to suggest an adjustment of Europe’s China policy – for the better, of course – against the backdrop of what is emanating from Washington against Europe,” Gong told Al Jazeera.

The shifting diplomatic calculations are also clear in Canada, which has shown a renewed willingness to deepen economic ties with China after several spats with Trump over the past year.

Carney’s is the first visit to Beijing by a Canadian prime minister since Justin Trudeau went in 2017, and he came away with a deal that saw Beijing agree to ease tariffs on Canadian agricultural exports and Ottawa to ease tariffs on Chinese EVs.

Trump lashed out at news of the deal, threatening 100 percent trade tariffs on Canada if the deal goes ahead.

In a statement last weekend on his Truth Social platform, Trump wrote that Carney was “sorely mistaken” if he thought Canada could become a “‘Drop Off Port’ for China to send goods and products into the United States”.

The meeting between Carney and Xi this month also thawed years of frosty relations after Canada arrested Huawei executive Meng Wanzhou in late 2018 at the behest of the US. Beijing subsequently arrested two Canadians in a move that was widely seen as retaliation. They were released in 2021 after Meng reached a deferred agreement with prosecutors in New York.

In Davos, Carney told world leaders that there had been a “rupture in the world order” in a clear reference to Trump, followed by remarks this week to the Canadian House of Commons that “almost nothing was normal now” in the US, according to the CBC.

Carney also said this week in a call with Trump that Ottawa should continue to diversify its trade deals with countries beyond the US, although it had no plans in place yet for a free-trade agreement with China.

Filling the void

Hanscom Smith, a former US diplomat and senior fellow at Yale’s Jackson School of International Affairs, told Al Jazeera that Beijing’s appeal could be tempered by other factors, however.

“When the United States becomes more transactional, that creates a vacuum, and it’s not clear the extent to which China or Russia, or any other power, is going to be able to fill the void. It’s not necessarily a zero-sum game,” he told Al Jazeera. “Many countries want to have a good relationship with both the United States and China, and don’t want to choose.”

One glaring concern with China, despite its offer of more reliable business dealings, is its massive global trade surplus, which surged to $1.2 trillion last year.

Much of this was gained in the fallout from Trump’s trade war as China’s manufacturers – facing a slew of tariffs from the US and declining demand at home – expanded their supply chains into places like Southeast Asia and found new markets beyond the US.

China’s record trade surplus has alarmed some European leaders, such as French President Emmanuel Macron, who, in Davos, called for more foreign direct investment from China but not its “massive excess capacities and distortive practices” in the form of export dumping.

Li tried to address such concerns head-on in his Davos speech. “We never seek trade surplus; on top of being the world’s factory, we hope to be the world’s market too. However, in many cases, when China wants to buy, others don’t want to sell. Trade issues often become security hurdles,” he said.

Jan. 27 (UPI) — South Korea on Tuesday called China’s decision to remove one of the disputed steel structures from their overlapping waters in the Yellow Sea “meaningful progress” that would help advance bilateral ties.

The foreign ministry made the comment after Being announced that work was in progress to remove part of the three steel structures built in the sea zone where the two countries’ exclusive economic zones (EEZs) overlap.

China built two semi-submersible buoys in 2018 and 2024 and a fixed steel platform in 2022 in the Provisional Maritime Zone (PMZ). The issue has been a source of tensions in bilateral relations, as Seoul has regarded the installations as Beijing laying the potential groundwork for future territorial claims.

“As we have continued talks with China on the matter based on our consistent position that we oppose the unilateral installations of the structures in the PMZ, we assess the latest move as meaningful progress,” Kang Young-shin, director general for Northeast and Central Asia affairs, told reporters.

“The measure can be seen as a change that would help advance South Korea-China relations,” Kang said.

Another ministry official said China would be moving the management platform out of the PMZ, with the operation expected to begin at 7 p.m. Tuesday (local time) and run through Saturday, citing the notice from China’s maritime authorities.

“We have maintained our constructive dialogue with the Chinese side and will continue to seek further progress going forward,” Kang added.

Chinese foreign ministry spokesperson Guo Jiakun said in a briefing that a Chinese company was carrying out the work to remove the management platform, an autonomous operation in progress led by the company in line with its management and development needs.

Seoul and Beijing have agreed to draw the PMZ line as a tentative measure amid the stalled talks over EEZ demarcation in order to allow fishing vessels to operate safely and jointly manage marine resources in the area, while prohibiting activities beyond navigation and fishing.

South Korea has argued that China’s installations of the steel structures run counter to such efforts.

Following the summit talks in Beijing with Chinese President Xi Jinping earlier this month, President Lee Jae Myung said China was expected to remove one of the three steel platforms from the Yellow Sea.

Beijing’s move came after the two countries reportedly reached an understanding that the management platform should first be pulled out of the PMZ, following concerns raised in Seoul over the possibility that the structure could be diverted for other uses.

The platform that China claims to be a management facility for the fish farm is believed to be a repurposed decommissioned oil rig.

Copyright (c) Yonhap News Agency prohibits its content from being redistributed or reprinted without consent, and forbids the content from being learned and used by artificial intelligence systems.