Colonialism 2.0? Or a More Equal Partnership - the China Track Record in the DRC

Highlights

• China dominates the global cobalt market through strategic investments in the Democratic Republic of the Congo, controlling 80% of cobalt mining and refining.
• Chinese infrastructure deals like Belt and Road and Sicomines have exchanged infrastructure spending for mineral resource access, creating increasingly contentious economic relationships.
• U.S. national security is at risk due to China's cobalt market control, requiring alternative investment models that enable local African resource manufacturing and refinement.

In an article in October 2024, China in the Democratic Republic of the Congo: A New Dynamic in Critical Mineral Procurement, Farrell Gregory (opens in a new tab) and Lieutenant Colonel Paul J. Milas (opens in a new tab) analyze China’s dominance in the cobalt supply chain and its broader implications for global and U.S. strategic interests. Gregory, a student at Dickinson College and policy fellow, and Milas, a U.S. Army foreign area officer specializing in Sub-Saharan Africa, explore how China’s investments in the Democratic Republic of the Congo (DRC) have secured its position in the global cobalt market—a resource critical for military and commercial technologies such as batteries and electric vehicles.

The authors piece can be read at the Strategic Studies Institute: US Amy War College (opens in a new tab).

The Democratic Republic of Congo

The authors argue that China’s dominance stems from its significant investments in the DRC, which produces 80% of the world’s cobalt, with Chinese enterprises controlling the majority of its mining and refining.

Through initiatives like the Belt and Road and the 2008 $6 billion Sicomines deal (opens in a new tab), China has exchanged infrastructure spending for access to the DRC’s natural resources. However, the DRC has increasingly viewed these agreements as inequitable, citing underdelivered infrastructure projects and undervalued mineral resources. Recent renegotiations have resulted in increased infrastructure commitments but failed to address systemic imbalances.

The authors highlight the strategic implications of China’s control over cobalt for U.S. national security, noting its importance in defense and advanced technologies. They criticize the U.S. for ceding ground to Chinese firms, as seen in the sale of key mining assets by Freeport-McMoRan. They propose that the U.S. and its allies develop alternative models for investment, focusing on enabling African countries to refine and manufacture resources locally, thereby offering a more equitable partnership compared to China’s approach.

The article underscores the need for a strategic U.S. response to secure critical mineral supply chains but leaves unanswered questions about how these alternatives can be effectively implemented in the face of China’s entrenched presence. It also assumes that value-added investments would be sufficient to counterbalance China’s influence, a hypothesis requiring further exploration.