China Justifies Rare Earth Export Restrictions Amid U.S. Tariff Tensions: Key Insights from the Trump-Xi Meeting

China recently defended its new export controls on rare earths, calling them a “legitimate” move under international law. This comes in response to U.S. claims of economic coercion following America’s announcement of new tariffs and export restrictions.

On October 9, the Chinese Ministry of Commerce emphasized that these controls were part of China’s effort to enhance its export system and promote global peace amid a challenging security climate. Notably, these measures affect both rare earth materials and related technologies.

Importantly, the new rules don’t prevent exports outright. If foreign entities meet certain criteria, they can still get licenses. However, items that could serve military purposes will be denied. This change means that companies will need a license to export any product containing over 0.1% of Chinese-sourced rare earths.

The European Chamber of Commerce in China has reported a backlog of applications for these export licenses, indicating that the new restrictions complicate global supply chains. This is a concern since China supplies about 70% of the world’s rare earths—critical materials used in everything from electronics to renewable energy technologies.

In reaction, President Trump announced additional tariffs of 100% on imports from China, effective November 1. He suggested that China shouldn’t be able to use its rare earths dominance to its advantage. The market responded sharply, losing $2 trillion in value after Trump’s statements.

China accused the U.S. of hypocrisy, pointing out that the U.S. controls over 3,000 items, while China’s list is significantly smaller. Experts warn that these escalating trade tensions could create supply issues and drive prices up, especially for tech manufacturers heavily reliant on these materials.

Adding to the tension, China announced it would begin charging U.S. ships docking at Chinese ports, mirroring a new U.S. fee on Chinese vessels. This “defensive action,” according to the Chinese government, is a response to U.S. disruptions in trade dialogues.

These recent developments reflect a broader trend in economic relations between the U.S. and China. As seen in previous trade wars, such as those in the 1980s and 2000s, both sides have used tariffs and restrictions as tools to gain leverage. The current situation echoes those past scenarios but occurs in a vastly more interconnected and technologically advanced world, highlighting the stakes involved in such economic confrontations.

In the court of public opinion, social media discourse has intensified, with many users expressing concern over the future of technology industries that rely heavily on rare earth materials. The situation remains fluid, and it’s clear that the path ahead will be critical for both countries and the global economy.



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