GEOPOLITICS OF RESOURCES IN THE INDO-PACIFIC REGION

INTRODUCTION

Resource geopolitics involves examining how the distribution, access, and control of natural resources—such as oil, gas, water, minerals, and fertile land—impact power dynamics, national security, and international relations. It explores how countries, corporations, and other entities compete for acquiring control over the limited resources, and how such resources shape strategic choices, alliances, and conflicts between nations. The Indo-Pacific region has become one of the most crucial geopolitical arenas in the 21st century, primarily due to its abundance of natural resources, critical maritime routes, and the rising influence of key global powers. Spanning from the east coast of Africa to the western shores of the Americas, the region includes major actors such as China, India, Japan, Australia, and the United States. Central to Indo-Pacific geopolitics is the competition for control over essential resources like energy reserves, rare earth elements, fisheries, freshwater, and strategically important territories. These resources are vital not only for economic growth but also act as factors of regional tensions, military strategies, and alliances.

Energy Resources and the South China Sea

The Indo-Pacific region is bestowed with significant oil and gas reserves, particularly in the South China Sea, which has become a focal point of geopolitical rivalry. The U.S. Energy Information Administration estimates that the South China Sea contains about 11 billion barrels of oil and 190 trillion cubic feet of natural gas in proven and probable reserves. These vast energy resources are vital for the growing energy needs of rapidly industrializing economies such as China, India, and Southeast Asian nations. Being one of the most powerful nations in this region, China has staked expansive claims over the South China Sea through its "Nine-Dash Line," which covers nearly 90% of the sea’s area, including regions rich in oil and gas. These claims overlap with the territorial waters of several Southeast Asian countries, including Vietnam, the Philippines, Malaysia, and Brunei. The disputes over territorial control are, in part, driven by the desire to secure exclusive access to these energy resources, as well as to dominate the strategically important sea lanes. The United Nations Convention on the Law of the Sea (UNCLOS) grants countries exclusive rights to resources within 200 nautical miles of their coastlines, known as Exclusive Economic Zones (EEZs). However, China’s claims extend well beyond its EEZ, leading to confrontations with neighbouring states. The construction of artificial islands and military bases by China in contested areas like the Spratly Islands has escalated tensions and drawn international attention, particularly from the United States, which views the freedom of navigation in these waters as a critical issue. China's efforts to assert control over the South China Sea are partly aimed at securing its energy imports, which largely pass through the region. Meanwhile, the U.S. Navy's presence in the region aims to ensure open access to these critical sea lanes and counterbalance China’s influence.

Rare Earth Elements and Mineral Resources

The Indo-Pacific region is also rich in minerals and rare earth elements (REEs), which are critical for modern technologies such as smartphones, electric vehicles, renewable energy infrastructure, and advanced military systems. Rare earth elements, including neodymium, dysprosium, and lanthanum, are essential for producing permanent magnets, batteries, and other high-tech products. China currently dominates the global supply of rare earth elements, controlling more than 80% of the world’s production. This dominance has raised concerns among other nations, particularly the United States, Japan, and Australia, about supply chain vulnerabilities. China has previously used its control over REEs as a geopolitical tool, notably in 2010 when it restricted exports to Japan during a territorial dispute. In response, other Indo-Pacific nations are seeking to diversify their sources of rare earths. Australia, with its large reserves of rare earth minerals, is emerging as a key alternative supplier. The U.S. and Australia have formed partnerships to develop new REE projects and reduce dependence on Chinese imports. India, too, has significant reserves of rare earth elements and is exploring ways to exploit them to boost its domestic manufacturing capabilities.

The Indo-Pacific is also a promising region for deep-sea mining, with considerable deposits of cobalt, nickel, and manganese along the seabed. These minerals are crucial for the production of batteries, particularly in the event of the global shift towards electric vehicles and renewable energy technologies. Countries like China, Japan, and South Korea have shown interest in deep-sea mining in the Pacific Ocean, particularly in areas like the Clarion-Clipperton Zone (CCZ), which is believed to contain vast quantities of these valuable metals. However, deep-sea mining faces significant regulatory and environmental challenges. The International Seabed Authority (ISA), which oversees mining activities in international waters, has yet to finalize regulations for deep-sea mining. Moreover, environmentalists have raised concerns about the potential impact on marine ecosystems. The balance between resource extraction and environmental preservation will be a key factor in shaping the future of deep-sea mining in the Indo-Pacific.

Water Resources

Apart from crucial resources such as energy, minerals, and fisheries, freshwater resources are an increasingly important aspect of Indo-Pacific geopolitics. The Mekong River, which flows through China, Myanmar, Laos, Thailand, Cambodia, and Vietnam, is a critical waterway for millions of people. However, the construction of dams along the river, particularly in China, has raised concerns about water security in downstream countries. China has built numerous dams on the upper reaches of the Mekong River, which it calls the Lancang River. These dams give China significant control over the flow of water downstream, affecting agriculture, fisheries, and livelihoods in countries like Vietnam and Cambodia. During droughts, China’s release or withholding of water from its dams can have serious consequences for downstream nations, leading to tensions over water rights and management.

In response, countries along the Mekong have sought to strengthen cooperation through regional organizations such as the Mekong River Commission (MRC), that aims at a sustainable development within countries. However, the asymmetry of power between China and its smaller neighbours makes it difficult for downstream countries to challenge China’s control over the river.

The Future of Resource Geopolitics in the Indo-Pacific

The competition for resources in the Indo-Pacific is likely to intensify in the coming years as countries seek to secure access to energy, minerals, fisheries, and freshwater in a region that is home to some of the world’s most dynamic economies. The Indo-Pacific’s geopolitical landscape will continue to be shaped by the actions of major powers like China, the United States, India, and Japan, as well as by the strategies of smaller nations seeking to navigate the complex web of alliances and rivalries. Environmental concerns, particularly related to overfishing, climate change, and the sustainability of resource extraction, will also play a growing role in regional geopolitics. As the world shifts towards renewable energy and advanced technologies, the Indo-Pacific’s resources—whether in the form of rare earth elements or deep-sea minerals—will become even more valuable.

In this evolving landscape, cooperation between nations on issues such as resource management, maritime security, and environmental protection will be essential to ensure the stability and prosperity of the Indo-Pacific region. However, the balance between cooperation and competition will remain delicate, and the geopolitics of resources will unfold to be a defining factor of the future of these countries in conflict.