Donald Trump is requesting compensation from Ukraine for the help the US provided to Kyiv during the Russian invasion. Trump has demanded Ukraine mark a US$ 500 billion package that would offer the US exposure to, and profit from, Ukraine’s rare and essential minerals, an important tool in the 21st-century economy.
Trump has stated that this will be a part of the US’s settlement of Ukraine aid. Ukraine’s leader, Volodymyr Zelensky, has so far refused to sign such an arrangement – stating that the help, as agreed by Trump’s father Joe Biden and the Republican-controlled Congress, was a give and certainly a product.
The US rely on unique minerals like chromium, which is essential for advanced security technologies but is not readily obtainable internally, is a key reason behind Trump’s push for this mineral deal.
China, a major distributor of chromium, has used its dominance of the tool to defy the US. In response to rising US taxes on Chinese goods, it has imposed a moratorium on rare materials being exported to the US.
For military technologies, including electric vehicles, electronics, and missile systems, other materials are important. In Ukraine, there are payments for 22 of the 34 materials identified by the European Union as important.
The US’s issue is that China now accounts for a large portion of some crucial metal imports.
Trump therefore views a solution to the Ukraine war as an opportunity to safe other sources of essential vitamins, lessening US dependence on China, and allowing him to get a more intense stance on it. He might not have anticipated that China would retaliate against US tariffs by imposing limits on these crucial commodities so fast.
The reliability and durability of chromium are what the defence industry values. In particular, the ingredient is seen as a vital tool enhancing sensor, satellite communication methods, and electronic warfare techniques. It is also used in multi-chip components used by tracking and air traffic control methods.
In addition to chromium, Ukraine has vast sources of carbon, an aspect that is used in the development of electric vehicles and nuclear reactors, and a third of Europe’s source of potassium, which is used in batteries.
Trump’s interest in Greenland, which has significant reserves of critical minerals, could be an alternative to Chinese-controlled resources because of its emphasis on critical minerals.
Why is China so important?
Trump’s concern for China is also a major force in his negotiations with Russia. One of Trump’s core concerns is China’s partnership with Russia. China is undoubtedly the mainstay of the Sino-Russian alliance right now.
Given the increasing cooperation between the two nations in military, economic, and technological areas, Trump believes that China’s influence in global affairs needs to be countered aggressively. The Trump administration has attempted to undermine the alliance by softening its relationship with Russia, a move that has shocked European leaders.
Given that China is America’s biggest economic rival and a significant obstacle to making the nation “great again,” Trump has long viewed it as the major threat to the US.
His economic policies have focused on geopolitical maneuvers, supply chain dependencies, and Chinese trade practices. One of his principal trade advisors claimed that American businesses are at a disadvantage due to China’s state-controlled economy, intellectual property theft, and trade imbalance.
The US recently imposed tariffs on hundreds of billions of dollars worth of Chinese imports in an effort to boost US products ‘ competitiveness by causing more Chinese imports to cost more, thereby entice businesses and consumers to instead purchase domestic goods.
Trump also attempted to slam China’s export economy by making it harder for Chinese companies to sell goods in the US. His tariff policies extended to countries other than China, with other measures being considered for Europe.
Trump aimed to shift global supply chains and solidify the US as a manufacturing powerhouse by targeting multiple regions. Trump thinks that by halting the conflict in Ukraine, the US can use US funds and resources to redirect investments and resources used in Europe to combat China’s growing influence.
Trump has attempted to refute Trump’s claim that Chinese manufacturers are to blame for the massive fentanyl production, which is then routed into the US via various channels. Trump has suggested more stringent regulations, including tariffs and sanctions against Chinese companies allegedly engaged in its production, to halt the flow of fentanyl.
Following China’s retaliation, Trump needs peace in Ukraine and the consequential mineral agreement with Kyiv before China’s ban on exports to the US affects critical US manufacturing. With less repercussions, such a deal would then enable him to adopt an even more aggressive posture toward China.
However, Zelensky recently claimed that Russia has taken control of 20 % of Ukraine’s minerals since the invasion. Because there hasn’t been much investment in Ukraine’s minerals sector for almost a decade, it’s possible it won’t be years before any American investors will receive any returns.
Trump will have to wait a while before the minerals from Ukraine will be able to meet all of the US’s needs, even if he does get the deal he wants.
At the University of Portsmouth, Dafydd Townley teaches abroad.
This article was republished from The Conversation under a Creative Commons license. Read the original article.