A recent report from the Institute for Public Policy Research highlights significant vulnerabilities in the UK economy due to its heavy reliance on China, particularly in sectors such as batteries and critical minerals. The report estimates that approximately 90,000 jobs could be jeopardized as businesses find themselves increasingly dependent on geopolitical stability.

Guy Wakeley, the CEO of Reconomy, an international circular economy specialist, emphasized the urgency of addressing these vulnerabilities. He pointed out that the demand for critical resources—such as those needed for electric vehicle batteries and advanced technology like AI chips—is surging, while the availability of these resources is dwindling. This imbalance is exacerbated by the concentration of supply in a limited number of countries, creating a competitive global landscape for access to these essential materials.

Wakeley warned that the geopolitical landscape in 2026 is likely to be heavily influenced by the competition for critical minerals, a trend that has already begun to manifest in international relations this year. He advocates for a strategic pivot towards circularity, which involves maximizing the use of existing resources and minimizing waste. This approach not only aims to preserve resources but also seeks to ensure that they remain in circulation for longer periods, thereby reducing dependency on external supply chains.

The call for a circular economy comes at a critical time as the UK grapples with the implications of its economic strategies in light of global tensions. By focusing on sustainability and resource efficiency, businesses and government entities can potentially safeguard against future economic shocks and create a more resilient economic framework.

As the UK navigates these challenges, the emphasis on circularity may provide a pathway to decouple from reliance on foreign economies and enhance domestic job security in the face of an unpredictable geopolitical landscape.