China taps new state investment firm to help coordinate its global metals and mining deals

[BEIJING] China has chosen a new state investment company to help coordinate its overseas metals and mining deals, and counter mounting geopolitical risks that threaten its ability to secure resources, according to people familiar with the matter.

The National Development and Reform Commission (NDRC), the government’s economic planning agency, will take the lead on strengthening oversight of investment decisions, the people said, asking not to be identified as they aren’t authorised to speak publicly. State-owned Guangyan International Investment will offer support on compliance and financing, as well as industrywide planning of outbound deals.

Guangyan, established in 2024 with registered capital of 60 billion yuan (S$11.4 billion), will be able to co-invest in overseas projects alongside Chinese firms, the people said. The little-known company is majority owned by state minerals giant China Minmetals, according to registry database Qichacha.

Beijing told a number of major companies at a meeting last month they will receive backing for overseas investments from government bodies, the people said. At the same time, smaller firms would face stricter controls given their weaker capacity to tackle political risks and operational challenges abroad.

The companies that attended the meeting included the nation’s largest copper and gold miner, Zijin Mining Group, and China Baowu Steel Group, its biggest steelmaker. China is the largest global consumer of materials from battery minerals to precious and industrial metals.

Contact details for Guangyan weren’t immediately available. The NDRC, Minmetals, Zijin and Baowu did not immediately respond to requests for comments.

National champions

Beijing has a history of picking national champions to strengthen its clout in overseas markets. The new approach demonstrates the government’s willingness to take a central role in dealing with increased protectionism and the tussle for control of natural resources around the world.

China is competing with other advanced economies including the US to build resilient supply chains and secure access to vital commodities. It’s also managing the fallout from shifts in policy that have affected its investments in mineral-rich countries, including the Democratic Republic of Congo, Zimbabwe and Indonesia.

The metals and mining directive appears to be part of China’s broader push to strengthen oversight of outbound investment and tighten cross-border capital flows as its technological rivalry with the US intensifies.

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At the meeting in May, the NDRC told miners to take a prudent approach to foreign investment, encouraging them to introduce local and international capital to diversify risks rather than taking full ownership of projects, the people said.

The planning agency also underscored the role miners play in countering Western competitors, and urged them to enhance China’s influence over commodities prices on international markets, they said. BLOOMBERG