Amid a furious reaction from Washington, Beijing has mounted a defense of its new export controls on rare-earth minerals, insisting that the measures are legitimate and do not constitute an outright ban. This clarification from China’s commerce ministry comes as a dispute over these strategic materials threatens to ignite a full-blown trade war with the United States.
The controversy erupted after President Donald Trump threatened to impose 100% tariffs on all Chinese goods, citing China’s controls on minerals like europium and thulium as a “very hostile” act. These elements are critical for U.S. industries, and the prospect of a supply disruption sent shudders through the technology and defense sectors.
In its response, the Chinese commerce ministry sought to de-dramatize the situation. “China’s export controls are not export bans,” a spokesperson stated, according to state media. They added that “all applications of compliant export for civil use can get approval,” directly addressing the concerns of businesses that rely on these materials and reassuring them that they need not worry excessively.
The ministry also framed the controls as a response to U.S. actions. The measures were introduced after Washington added more Chinese companies to its own export control list, cracking down on firms it accuses of circumventing U.S. sanctions. From Beijing’s perspective, its actions are a reasonable and defensive measure to protect its national interests.
Despite these assurances, the dispute has already inflicted major damage on financial markets, wiping trillions from stock valuations. The U.S. has not yet publicly accepted China’s explanation, and the massive tariff threat remains on the table. The conflict over rare earths has thus become a central battleground in the broader economic and strategic rivalry between the two nations.