South Korea-Africa Economic Agreement: China vs. the Rest of the World

South Korean President Yoon Suk Yeol and African leaders have agreed to strengthen trade and business cooperation, focusing on critical minerals to sustain Africa’s resources. Africa is home to 30% of the world’s reserves of critical minerals, including chromium, cobalt, and manganese. In related news, Australia has ordered China’s Yuxiao Fund and its partners to sell their stakes in rare-earth mining company Northern Minerals Ltd., as part of efforts by the US and its allies to counter China’s dominance of critical minerals. China currently has a virtual monopoly on rare-earth production and processing.

China’s expanding economic influence in Latin America is facing challenges as local communities push back. This has been evident in China’s recent ban on imports of Guatemalan coffee and other goods. Tensions are also rising, with Huawei and the Costa Rican government at odds. Furthermore, the threat of cheap Chinese textiles to Brazilian fashion boutiques is becoming an issue, with accusations of environmental damage against Chinese companies. These reactions underscore the potential consequences of China’s economic influence in the region.

Turkish exports to Israel plummeted 99% to $4.4 million year-on-year following a decision by Turkey’s Trade Ministry to halt trade until Israel allows “uninterrupted and sufficient flow” of humanitarian aid to Gaza. Prior to Israel’s conflict with Hamas, Turkey and Israel were in the process of normalizing relations, with total trade worth $6.8 billion last year.