(Marco Emanuele)
The Global Eye interviews Marina Zhang, an associate professor at the Australia-China Relations Institute, University of Technology Sydney. Marina is the author of three books, including “Demystifying China’s Innovation Machine: Chaotic Order,” co-authored with Mark Dodgson and David Gann (Oxford University Press, 2022). Marina has published in leading innovation and management journals, including Technological Forecasting & Social Change, Research Policy, Management & Organization Review, Asia Pacifica Journal of Management, and Technology Analysis & Strategic Management, among others.
The world seems to be divided into blocs on the issue of security in the supply of critical materials for the ecological transition. Is this a decisive issue in the recomposition of power relations at a global level? Is it on this issue that the redefinition of globalization can begin?
The security of critical materials supply is indeed becoming a central theme in global power dynamics. As nations strive to secure resources essential for technologies like electric vehicles, renewable energy, and advanced electronics, the race for these materials is reshaping alliances and rivalries. This race reflects broader trends in geopolitical realignment, where economic and technological might are increasingly interwoven.
The issue of critical materials is also pivotal in redefining the global order. As countries seek to secure and diversify their supply chains, we’re witnessing a shift from the globally integrated market towards more regionalized or localized supply networks, based on political and ideological values. This shift, driven by concerns over security and sustainability, could mark the beginning of a new phase in globalization characterized by a blend of collaboration, competition, and strategic autonomy.
In the background there is the great competition between Washington and Beijing, which involves all countries, including medium powers such as Australia. Will we move towards the predominance of bilateral and regional agreements?
The tension between Washington and Beijing indeed affects countries worldwide, including medium powers like Australia and Argentina. In this environment, there’s a growing inclination towards bilateral and regional agreements, as these offer more control and security compared to broader multilateral frameworks. This trend can be seen in the increased emphasis on “friend-shoring”, where countries prioritize trade and cooperation with nations sharing similar values or strategic interests.
For example, Australia, with its significant role in the Indo-Pacific region and as a major producer of critical minerals like lithium, is particularly affected. It’s likely to strengthen ties with allies through bilateral agreements or regional pacts like AUKUS, balancing its economic interests with strategic security concerns, especially in relation to China.
Argentina, given its lithium reserves, is a key country. How will the new Milei administration move?
Argentina’s vast lithium reserves place it at a strategic point in the global competition for resources vital for the green transition. The newly elected administration under Javier Milei will have to navigate this complex landscape. Milei’s initial stance suggests a potential realignment towards the US, distancing Argentina from China.
However, the decision is not straightforward. China has been a significant investor in Argentina’s lithium sector, and any shift might have immediate economic repercussions. The new administration will need to balance the immediate benefits of Chinese investment and market access against the long-term strategic and geopolitical advantages of aligning with the US.
Argentina’s choice could set a precedent for other resource-rich countries, influencing global supply chains and power dynamics. The country’s approach under Milei’s leadership will be watched closely, as it could signal broader shifts in how nations engage with the two superpowers in the evolving landscape of critical materials and green technology.
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