BRICS to Talk Rare Earth Supply Amid China’s Restrictions, President Xi to Skip Meet for First Time

China's export restrictions on rare earth elements (REEs) are likely to be discussed at the Brics Summit scheduled in July, according to a Business Standard report. Apart from China, the Brics comprises Brazil, Russia, India, South Africa, Egypt, Ethiopia, Iran, Saudi Arabia, the United Arab Emirates and Indonesia and they will meet in Rio de Janeiro, Brazil from July 6-7.

China has put export curbs on seven REEs on April 4 following US President Donald Trump's "Liberation Day" tariff on trade partners on April 2. Talking to the newspaper, Brazil Ambassador to India Kenneth Félix Haczynski da Nóbrega said that it's a global issue, not just Bric's and they are going to discuss it.

"You have to be mindful that Brics countries together contribute a huge chunk to the world’s REEs. This has to be discussed because this is a result of trade tensions not created by Brics countries. When Brics discusses this, it is discussing the consequences of trade wars,” BS quoted Nóbrega. However, he noted that they have not reached the point of negotiation.

However, Chinese President Xi Jinping is reportedly going to be absent from the Brics meeting, which he has never missed since 2013, including the virtual editions during the pandemic. This marks a significant diplomatic turning point.

China controls around 70% of the global REEs mining output and accounts for about 90% of the world’s processing and refining of such products. Even as China's strategic move on rare earth magnets came as the aftermath of the US' punitive tariff announcements, Trump claimed that Washington DC had broken a deal with Beijing on how to facilitate rare earth shipments. Meanwhile, as many as 30 Indian companies are still awaiting approvals from Chinese authorities to import the critical metals.

After the BRICS expansion in 2024, the alliance officially accounts for 42% of the global oil and gas reserves and majority of the rare-earth metals reserve, totalling 72%. This gives the alliance an added advantage in global trade in the oil and rare-earth metals sectors.

BRICS countries complement each other for the extraction of critical minerals and production. The cooperation could leas to mutual trade within BRICS members and ensure the continuity of the supply. The alliance can also decide on the stability of the prices and be ahead in decision-making.