Beijing: In a direct response to escalating trade frictions, China has defended its tightened controls on the export of rare earth elements and related equipment, describing the measures as legitimate and necessary. The announcement comes after U.S. President Donald Trump imposed a 100% tariff on Chinese exports to the United States and announced new export restrictions on critical software, effective November 1.
The Chinese Ministry of Commerce criticized the U.S. actions as “hypocritical” and detrimental to the atmosphere of bilateral economic and trade negotiations. Beijing cited the addition of Chinese firms to a U.S. trade blacklist and port fees imposed on China-linked vessels as actions that have “severely harmed China’s interests.” While emphasizing that its export restrictions are motivated by national security concerns and the military applications of rare earths, China stopped short of imposing immediate counter-tariffs on U.S. imports.
China’s export controls have expanded to include additional rare earth elements and related equipment, requiring exporters to obtain licenses. The move underscores China’s strategic dominance in the global rare earth supply chain, essential for sectors such as electric vehicles, aerospace, and defense technology. Although the country refrained from immediate retaliatory tariffs, authorities warned that further measures could be implemented if the U.S. continues its trade policies.
The new restrictions have already created uncertainty in global supply chains, affecting companies reliant on Chinese rare earths and magnets. Analysts warn that the situation could complicate the upcoming meeting between Presidents Trump and Xi Jinping, while sending ripples through technology and manufacturing sectors worldwide. China’s measured response leaves open a potential path for negotiations, even as tensions remain high.
This latest development highlights the increasing use of rare earth minerals as a strategic tool in global trade disputes, demonstrating the intersection of economic policy and national security in U.S.-China relations.