How to Engage Early with China’s Strategic Expansion
Zijin’s Mining’s Chen Jinghe. © Under Licence: Visual China Group (VCG)
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OPINION
Opportunity and Entry for Western Companies
★ Article by Ari Steinmetz, Sun 26 Nov, 2025Overview
In the evolving landscape of global mining and metals, China’s dominance is no longer a mere competitive edge—it’s the defining feature of the sector. With its stranglehold on critical minerals, China has transformed from a passive player into the architect of global supply chains for resources like rare earths, lithium, graphite, and cobalt. For businesses seeking to thrive in this space, the challenge is clear: engage with Chinese companies early, or risk being sidelined.
The recent U.S.-Australia critical minerals agreement—a reluctant acknowledgment of China’s sway—underscores the urgency of this reality. Governments and businesses in the West are scrambling to position themselves within new supply chains, but they are missing a fundamental point: China is not just leading the charge; it is designing the racecourse. To truly succeed in this new environment, Western business leaders must understand China’s strategy and engage strategically with its companies at the outset of key projects.
China’s Vision: A Full-Spectrum Strategy
China's investment in mining and metals is not driven by short-term market dynamics but by a carefully orchestrated, long-term strategic vision. Beijing has placed a premium on securing a dominant position across the entire value chain—from raw material extraction to processing, manufacturing, and ultimately, the technology needed to power the global green transition.
Take, for example, China’s control over more than 90% of the world’s refined rare earths and graphite capacity, or its commanding position in lithium and cobalt processing. These industries, which form the backbone of electric vehicle batteries, renewable energy infrastructure, and high-tech manufacturing, are now essential to China’s economic future. This dominance is not the result of market manipulation but a strategic commitment that spans decades. While the West has largely been focused on quarterly returns and short-term profits, China has been building the infrastructure to dominate the 21st-century economy. The full-spectrum industrial architecture China has constructed, spanning everything from mines to magnets, is not just a strategic advantage—it is the global standard.
Understanding China’s Competitive Advantage
For those in business development, there is an urgent need to understand that engaging with Chinese companies early in their projects is no longer optional—it’s a necessity. Chinese firms are investing heavily in every stage of the mining and metals value chain. The key to gaining a foothold lies in entering during the early phases—whether that means getting involved in exploration, feasibility studies, or early-stage engineering.
This is particularly true for Chinese state-backed companies, who are increasingly looking to partner with trusted international firms for projects in new regions. Companies like Zijin Mining, Tianqi Lithium, and Sinomine Resource Group are already leading global exploration initiatives, while China National Petroleum and China National Offshore Oil Corporation are driving energy and resource extraction projects across Africa, South America, and Central Asia.
To compete effectively, business development professionals must understand the unique economic gravity these companies exert. Simply put, they are up against an ecosystem of unmatched scale, technological sophistication, and efficiency. For example, Chinese mining firms have become the most efficient capital allocators in the sector, regularly completing projects in half the time it takes Western firms to do the same. As one mining executive at the Financial Times Mining Summit noted: "We criticize China now, but they had the foresight 15-20 years ago that we are only beginning to understand."
Collaborate, Don’t Isolate
The stark reality is this: while Western governments and companies scramble to establish alternative supply chains, they cannot afford to decouple from China entirely. China is deeply embedded in the global mining ecosystem, and any attempt to isolate Chinese influence in critical minerals would be both economically unfeasible and geopolitically misguided. As Michael Nossal, CEO of IGO, points out, the energy transition simply cannot succeed without Chinese participation.
The future of mining and metals is interdependence, not isolation. Building strategic partnerships with Chinese firms is not just a matter of accessing resources—it’s about creating mutually beneficial relationships that can weather geopolitical storms. Australian firms, for instance, have leveraged joint ventures with Chinese partners to gain access to some of the world’s most lucrative mining projects, such as the Greenbushes lithium mine operated in partnership with Tianqi Lithium.
The Strategic Role of Western Businesses
For those looking to place their business development teams in the midst of this global shift, there are several key considerations. First, understand the value of early-stage collaboration. The most successful partnerships with Chinese firms are not about replicating entire supply chains but about complementing each other’s strengths. This could mean providing specialized technology, innovative processes, or local market expertise in emerging geographies.
Second, build long-term, stability-focused relationships. Unlike Western companies, which often prioritize short-term financial returns, Chinese firms are more focused on long-term strategic objectives. Western firms that can align themselves with these goals—whether in securing access to resources or providing new technologies—will be positioned for sustained success.
Third, act as intermediaries. With China’s growing presence in markets outside its borders, there is ample opportunity for Western businesses to position themselves as strategic intermediaries—connecting Chinese operational efficiency with Western markets. This is particularly valuable in regions like Africa, where Chinese firms are aggressively securing resources, and in the burgeoning green tech sector, where demand for critical minerals is set to skyrocket.
Business Development in China
China's role has evolved from a dominant player to the architect of the industry’s future. For business development professionals (BDPs) looking to navigate this complex landscape, engaging with Chinese companies early in their projects is critical to success. As China extends its influence across the mining sector, understanding the country’s long-term vision, forming strategic partnerships, and leveraging the strengths of Chinese companies will be key to securing opportunities in this vital industry.
Understanding China’s Strategic Focus
Chinese companies in the mining and metals sector are not simply chasing short-term profits—they are securing long-term dominance. Giants like China National Petroleum, Zijin Mining, and Tianqi Lithium are making moves to control the entire value chain, from raw material extraction to processing and manufacturing. This integrated approach is driven by a clear strategy: vertical integration across critical industries.
For BDPs, this means identifying where Chinese companies are seeking growth, particularly in critical minerals such as lithium, cobalt, and rare earth elements. These minerals are essential for green technologies and the global energy transition, making them the focal point of China’s efforts. Keeping an eye on geopolitically sensitive regions—from Africa to South America—where Chinese firms are securing mining rights can offer valuable insights into where new business development opportunities may arise.
Aligning with Chinese Government Policy
China’s business decisions are often deeply aligned with national policy. Understanding the government’s long-term goals is crucial for BDPs looking to position themselves as partners. The Belt and Road Initiative (BRI), which seeks to connect China with global markets, is a prime example of how Chinese companies are strategically expanding. Tracking projects under this framework allows BDPs to identify key opportunities for collaboration in mining, infrastructure, and energy sectors.
Another critical point to watch is China’s 14th Five-Year Plan, which emphasizes resource security and a shift to clean energy. By understanding these priorities, BDPs can position their companies as partners for projects focused on electric vehicles, renewable energy, and battery technologies. Additionally, Chinese companies are aggressively acquiring overseas assets to ensure a steady supply of critical minerals—keeping tabs on mergers and acquisitions (M&A) activity is another important entry point for potential partnerships.
Early Engagement in Key Development Projects
Getting in early with Chinese firms is essential. The most lucrative opportunities often arise in the initial stages of projects—such as exploration, feasibility studies, and early engineering design. Companies like Zijin Mining and Tianqi Lithium are already leading global expansion efforts, and engaging at this stage allows BDPs to tap into first-mover advantages.
Moreover, Chinese companies are always on the lookout for new technologies in areas like automation, sustainability, and refining processes. By identifying gaps in their current operations and offering innovative solutions, BDPs can position themselves as early-stage partners in projects related to sustainable mining technologies or AI-driven mining solutions.
Building Strategic Partnerships and Expanding Networks
Chinese mining companies often work through local partnerships to access mining rights and regional expertise. For BDPs, this presents an opportunity to act as intermediaries—connecting Chinese firms with local partners in emerging markets. Collaborating with Chinese state-owned enterprises (SOEs) is another avenue, as these firms are constantly looking for joint ventures, technical solutions, and market expansion opportunities abroad.
Another vital channel for relationship-building is participation in industry events. Conferences like the China Mining Congress & Expo or Asia Mining Congress provide the perfect platform to establish direct connections with Chinese decision-makers and stakeholders. Engaging with these events allows BDPs to gain valuable insights into China’s evolving strategy and align their offerings accordingly.
Partnering with Contractors and EPC Firms
Engineering, procurement, and construction (EPC) contractors are integral to the success of mining projects, especially those at the early stages. Companies like China National Petroleum Engineering and China Railway Construction Corporation (CRCC) are major players in project development and often control the pace of execution. Building relationships with these contractors can serve as a key entry point into China’s mining supply chain.
Chinese EPCs are also looking for reliable vendors who can provide essential technology, equipment, and services. Business development professionals should target supply chain opportunities, offering solutions that complement the operational needs of these contractors. Whether it’s cutting-edge mining technologies or sustainability-driven innovations, being a reliable partner in the supply chain will help BDPs align with China’s expanding operations.
Understanding Risk Mitigation and Market Entry Strategies
One of China’s core strengths lies in its ability to manage risks, especially geopolitical risks. For Chinese firms, choosing business partners is a calculated decision, prioritizing credibility, risk management, and local expertise. BDPs looking to partner with Chinese companies should be prepared to offer risk assessment services and compliance frameworks to help mitigate the challenges of operating in complex or politically sensitive regions.
Moreover, Chinese companies are often focused on specific market entry strategies. They may prefer joint ventures, direct investments, or acquisitions depending on the project’s scope and location. Understanding these preferences and aligning with them can open doors to lucrative collaboration opportunities.
Staying Ahead with Technological Innovation
China is rapidly adopting technologies that can enhance efficiency and sustainability in mining. Automation, AI, and machine learning are becoming central to Chinese mining operations, and this presents an opportunity for BDPs to partner with Chinese firms on cutting-edge technological advancements. Providing solutions that integrate AI-driven mining systems or data analytics will allow BDPs to position themselves as valuable collaborators.
Additionally, as China’s focus on environmental sustainability intensifies, there are growing opportunities for firms that specialize in clean mining technologies, recycling solutions, or sustainable refining processes. This is a space where Western companies with innovative solutions can find significant opportunities to collaborate with Chinese partners in a meaningful way.
The Strategic Role of Intermediaries
In today’s complex global landscape, one of the most valuable roles that business development professionals can play is that of the strategic intermediary. By facilitating connections between Chinese operational efficiency and Western market access, BDPs can bridge the gap between two very different economic ecosystems. This intermediary position can be particularly valuable in navigating complex regulatory environments or expanding global supply chains.
Chinese companies are keen to expand their reach into new markets, and BDPs can help by identifying new suppliers or providing market entry strategies for Chinese firms. In this way, acting as a conduit between China’s strengths and new opportunities in emerging markets can set BDPs apart as indispensable partners.
Conclusion: Positioning for Success in a Shifting Global Landscape
As China continues to define the future of global mining and metals, the opportunities for Western businesses to engage with Chinese firms are significant. The key lies in understanding China’s long-term strategic goals, identifying early-stage opportunities, and positioning oneself as a strategic partner. By building relationships with Chinese state-owned enterprises, engaging at critical project stages, and offering innovative technologies, business development professionals can tap into the wealth of opportunities that lie ahead. The future of mining and metals will be shaped by collaboration, and those who act early and align with China’s global ambitions will be the ones best positioned to succeed.
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ABOUT THE AUTHOR(S)
— Ari Steinmetz
Ari Steinmetz is an mining & metals market expert at KPMG, with over 15 years of advising multinational firms on strategic growth, global expansion, and market dynamics, particularly within the mining and metals sectors.
VSG works across the extractive value chain, positioning people who form the critical bridge to early-stage relationships and commercial access in complex markets.
