China’s Overseas Minerals Processing Investments and Its Impact on Local Industry Diversification

Abstract China’s expanding role in midstream critical mineral processing is reshaping global clean energy supply chains, with increasing overseas investments, particularly in mineral-rich countries. This article examines the drivers behind these investments, including host countries’ regulatory measures like export bans and resource nationalization, as well as factors such as market proximity, policy support, and environmental compliance. It also explores their impact on local economies, highlighting contributions to industrial diversification, infrastructure development, and employment, while addressing challenges like environmental degradation and labor concerns.