WASHINGTON (FN) — Tensions between the United States and China escalated sharply this week as Beijing announced sweeping new restrictions on rare earth mineral exports, prompting a forceful response from the Trump administration ahead of a planned summit between President Donald Trump and Chinese President Xi Jinping.
China’s new rules, which apply globally, will be implemented in phases beginning November 8 and December 1. The measures require foreign companies to obtain government approval to export products containing even trace amounts of rare earths sourced from China.
U.S. officials condemned the move as economic coercion. “This will give China control over the global economy and the technology supply chain,” said Ambassador Jameison Greer at a press conference alongside Treasury Secretary Scott Bessent.
In retaliation, Trump announced a 100% tariff on all Chinese imports starting November 1. Despite the tariff threat, Bessent said the president still plans to meet with Xi in South Korea, expressing hope for a diplomatic resolution.
“I am optimistic this can be de-escalated,” Bessent said. “We’ve had substantial communication with the Chinese, and we expect more in the coming days.”
China’s Ministry of Commerce responded Sunday, stating it does not seek a trade war but will not hesitate to defend its interests. “If the U.S. persists, China will take appropriate countermeasures,” the ministry said.
Rare earth minerals are essential to modern technology, powering everything from smartphones and AI systems to defense equipment like F-35 fighter jets and Tomahawk missiles. China dominates global production, raising concerns about supply chain vulnerability.
The new rules could impact industries worldwide. Greer warned that even a car built in the U.S. and sold abroad might require Chinese approval due to embedded chips containing rare earths.
Analysts say the restrictions mirror U.S. export controls on semiconductor technology and signal Beijing’s intent to pressure Washington to ease its own trade barriers.
While the immediate focus is on tariffs, experts suggest the broader conflict reflects a deeper struggle over technological dominance and national security in the 21st century.
