President Donald Trump expressed shock at China’s new export controls on rare earths, accusing the country of “becoming very hostile.” However, according to Beijing, it was Washington’s expansion of curbs on Chinese firms that led to the tightening of its grip on critical minerals.
China’s move comes after the US significantly expanded its export restrictions on Chinese companies just 10 days after a phone call between Xi Jinping and Trump. This escalation has rattled markets, unnerved global industries, and rekindled fears of a repeat of the tit-for-tat tariff offense in spring.
The renewed tensions risk derailing progress made during months of trade negotiations and raise questions about whether a planned meeting between Chinese leader Xi Jinping and Trump in South Korea will still take place. However, Treasury Secretary Scott Bessent said he still expected it to happen.
China’s commerce ministry said Tuesday that the US cannot seek dialogue while threatening new measures. The move has been described as “petty manoeuvres” by a professor of international relations at Renmin University in Beijing.
The current escalation could have been avoided had the Trump administration not piled on more restrictions in late September, massively increasing the number of Chinese entities on its export control list. China’s response is seen as “proportional” and “logical” to the scale of Trump’s actions.
China holds a near-monopoly on the global supply of rare earths, which are essential for producing electronics, automobiles, and semiconductors. The new rules target production technologies and overseas use, increasing the number of elements subject to export controls.
Experts say Beijing’s measures mirror restrictions Washington has imposed on semiconductors over the years. China’s move signals it is willing to adopt similar tactics in response to US actions against China.
The ball is now in Trump’s court as he weighs his next moves. The planned meeting between Xi Jinping and Trump remains uncertain, but experts say China is “fully prepared” to deal with Trump and has been studying how to respond since his first term.
Source: https://edition.cnn.com/2025/10/13/business/china-us-rare-earth-analysis-intl-hnk