China has defended its recent export control actions on rare earths and associated products, stating it is a legitimate move to protect global peace. The country cautioned the United States about potential strong measures if President Donald Trump moves forward with the threat of imposing 100% tariffs on Chinese exports.
Beijing unveiled fresh restrictions on the export of technologies and equipment linked to the mining and processing of rare earths, lithium batteries, and rare earth-based superhard materials. The controls, effective immediately, also encompass overseas transfers of production technologies. China expressed concerns about foreign companies utilizing Chinese materials for military purposes, prompting these decisions.
US President Trump reacted by threatening a 100% tariff on Chinese goods starting November 1 and hinted at restricting exports of critical software, reigniting tensions in the trade war. In response, China’s Commerce Ministry accused the US of exaggerating national security concepts and misusing export control measures against China, particularly in the semiconductor and chip sectors.
The Ministry emphasized that threats of high tariffs are not conducive to constructive relations with China and urged Washington to correct its actions, adhere to recent consensus, and resolve trade disputes through respectful dialogue. China clarified that its export controls are lawful steps to uphold global peace, regional stability, and international obligations, emphasizing that these are not export bans. Licenses will be available for eligible applications, including for humanitarian purposes like disaster relief and medical aid.
China dominates global rare earth mining and processing, serving as a key supplier for electronics, automobiles, wind energy systems, and defense equipment. The US, European Union, and India are major importers of Chinese rare earth metals. China informed relevant nations through bilateral export control dialogues before announcing the new measures.
Despite recent US restrictive measures post the China-US economic talks in Madrid, China remains opposed to such actions that harm its interests and bilateral discussions. The ongoing trade negotiations between China and the US have rare earths as a crucial topic. Ahead of a planned meeting between Trump and Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation summit, China’s new restrictions on rare earths have come into effect.
The upcoming trade talks are seen as an opportunity to finalize a comprehensive trade deal. Analysts, like Alfredo Montufar-Helu from Ankura Consulting’s GreenPoint Business, note the need for continued engagement between the US and China to avoid a return to escalated trade tensions. Montufar-Helu emphasized the importance of finding a solution in the coming days to prevent adverse impacts on the global economy and business environment.