TMTPOST -- China is intensifying its global hunt for energy and critical mineral resources, as the world』s largest commodity consumer confronts mounting supply risks, price volatility, and geopolitical headwinds.
As China pushes toward its "dual carbon" goals and industrial modernization, its reliance on foreign oil, gas, and strategic minerals remains dangerously high. More than 70% of China's crude oil and over half its natural gas are imported. Of 36 types of strategic minerals deemed essential for economic security, China』s external dependency exceeds 70% for 13, and 40% for 20.
That dependency is forcing Chinese companies to look abroad with renewed urgency. Mining and energy firms are pivoting from cautious overseas forays to a more aggressive acquisition drive focused on securing long-term supply in emerging markets, even as Western governments move to curtail China』s global resource access.
**Early Missteps, Strategic Recalibration**
China』s global resource quest began as early as the 1980s, but its first wave of outbound investment in the early 2000s was marked by trial and error. State giants such as Sinosteel and Chinalco were among the pioneers, but many projects ran aground amid resource quality issues, shifting regulations, and political pushback. By 2015, the failure rate for Chinese overseas mining M\&A deals reportedly hit 95%.
But that era of blind deal-making gave way to a more professionalized, synergistic approach. Companies like Zijin Mining and China Molybdenum Co. (CMOC) have since emerged as global leaders by acquiring and integrating high-quality assets across Africa, Latin America, and Central Asia.
The landscape has changed dramatically in recent years. As the U.S. and allies launch the Minerals Security Partnership (MSP) to break China's dominance in battery metal supply chains, Chinese firms are encountering growing resistance in traditional destinations such as Australia and Canada.
Instead, Chinese investment is flowing into Belt and Road countries in Africa, Southeast Asia, and Latin America. Zambia, Indonesia, and the Democratic Republic of Congo have seen a surge of Chinese activity across copper, cobalt, lithium, and nickel projects. These regions are rich in untapped reserves and, in many cases, offer more welcoming policies.
Still, investment in these markets is far from risk-free. Political instability, underdeveloped infrastructure, inconsistent legal systems, and rising resource nationalism present significant challenges. Local governments are increasingly demanding downstream processing and value-added activities be located onshore, pushing Chinese firms to build out full-scale industrial chains abroad.
In response, leading Chinese resource players are now pursuing vertically integrated overseas strategies. From mining to smelting to sales, companies such as Huayou Cobalt, Ganfeng Lithium, and Tianshan Aluminum are embedding themselves deeper into host economies through local processing plants and supply chain investments.
At the same time, China』s state-backed infrastructure expertise is playing a critical role. Railways, ports, and power projects are helping unlock mineral-rich areas in Africa and Latin America, strengthening China's long-term foothold.
This approach, which contrasts with the extractive models of Western firms, has made Chinese companies preferred partners for many developing countries, despite growing Western diplomatic pressure.
After four decades of globalization, China's resource companies have evolved from tentative investors to global competitors with robust capabilities in project execution, cost control, and technology. CMOC, for instance, now manages operations across multiple continents and is advancing initiatives in smart mining and green metallurgy.
But as global resource competition intensifies, China』s mining and energy companies must navigate a tougher landscape defined by geopolitical fragmentation, ESG compliance demands, and shifting host-country expectations.
Whether they can maintain strategic clarity and operational excellence will determine if China can secure the resources it needs to fuel the next stage of its industrial ascent.
