This blog post is a part of USGLC’s Intern Blog Series.

As China ramps up its control over the world’s critical minerals market – producing over 90% through separation and refining processes – the United States is facing an uphill battle in a critical mineral rivalry that poses a direct threat to America’s economic and national security.

The Indo-Pacific is a strategic arena for this rivalry, with Pacific Island nations as a specific focus. From resource competition to geographic advantages for American interests, American engagement with the Pacific Islands will be a major factor in outcompeting China.

From laptops to phones to cars to advanced hardware, critical minerals power our economy, national security, and everyday life. But their availability is vulnerable to disruptions in supply chains, which are predominantly controlled by China. The Pacific Island nations, rich in these minerals, present an opportunity for the U.S. to diversify supply chains and create alternatives to China’s control that benefit U.S. economic competitiveness and regional security.

Last September, Deputy Secretary of State Christopher Landau met with Pacific Island leaders, including the Federated States of Micronesia, Fiji, Papua New Guinea, and Tonga to talk about private sector investment and economic development, where he announced eligibility for Fiji and Tonga to Millenium Challenge Corporation (MCC) funding. High-level meetings and investment programs like this are essential to counter China’s presence and ultimately, dominance in the region’s rich critical minerals market.

Critical Minerals in a Critical Region

As highlighted in USGLC’s issue brief on economic corridors, minerals-based industries contribute more than $4 trillion to the U.S. economy.

The Pacific Island region offers enormous potential to increasing U.S. access to minerals, with seafloor deposits rich in cobalt, copper, nickel, rare earth elements, and other critical minerals. The Cook Islands Seabed Minerals Authority estimates over 6.7 billion metric tons of recoverable mineral deposits within its exclusive economic zone, which could yield up to $47 million annually in public revenue for the country.

For Pacific Island states, the critical mineral race represents a pivotal opening for secure long-term growth, especially as poverty and food insecurity remain pressing challenges. Attracting investment into these states helps local economies overcome long-standing barriers to growth. Small island countries are in the market for sustainable, long-term partners who can deliver for them. For example, the Cook Islands have already begun structuring legal frameworks for seabed mining, establishing mining authorities, and negotiating agreements with private companies.

China’s Inroads and American Engagement

For the past three decades, Beijing has led the world in critical mineral production, refinement, and deep-sea exploration. China has invested heavily in seafloor mapping of the Pacific Ocean and has financed budding relations with several island nations.

Since 2020, President Xi Jinping and Chinese foreign ministers have met with Pacific Island heads of state and signed agreements with countries like the Cook Islands, Kiribati, and the Federal States of Micronesia to broaden economic partnerships related to ocean resources. From 2008 to 2022, China was the second largest aid provider to the Pacific Islands, while the U.S. ranked fifth. This economic backing has enhanced China’s reputation as an engaged partner in the region.

But the Trump Administration has been laser-focused on strengthening its partnerships overall with the Pacific Islands – not just on critical minerals  – by working to deliver digital connectivity across the Pacific; driving economic development in the region by investing in new hard infrastructure and privates sector partnerships, while also preventing disease outbreaks that threaten health and prosperity through global health investments. Smart and strategic investments in international assistance and diplomacy set the United States apart from China and other rivals, with Secretary of State Marco Rubio emphasizing that engagement with the region can “bear great fruit.”

Mutual Prosperity

U.S. partnerships and economic investments in the Pacific Island region can offer significant mutual benefits. Over 60% of global maritime trade transits through the Indo-Pacific, reinforcing the need for strong regional partnerships to accelerate trade and minimize disruption. By 2035, multiple Pacific Islands are projected to increase global imports up to 50%, boosting trade that in turn supports American jobs in manufacturing, technology, and other sectors.

By pairing diplomatic commitment with smart and strategic international assistance, the U.S. can establish itself as the partner of choice for Pacific Island nations and the broader Indo-Pacific region, enhancing reliable access to critical minerals, while spurring economic growth and mutual prosperity.