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By Robert Birsel and Shane Croucher
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China's Ministry of Commerce clarified that the recently announced rare earth export controls, which triggered a sharp backlash by U.S. President Donald Trump, are not an outright ban.
Trump viewed the new rare earth controls as a violation of an earlier agreement that led to a trade detente between the U.S. and China, and he threatened Beijing with a 100 percent tariff in retaliation.
Why It Matters
Rare earths are a group of 17 metals and minerals critical for manufacturing technologies ranging from electric vehicle motors and radar systems to the semiconductors that power artificial intelligence—China accounts for more than two-thirds of their global output.
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China’s new restrictions will prohibit U.S. defense contractors from receiving Chinese rare-earth materials and ban the export of technologies related to extraction, processing, magnet production, and equipment servicing. Under the new rules, foreign entities must from December 1 have a license to export products that contain more than 0.1 percent of the minerals sourced from China.
Analysts say China’s dominance in this field has eroded the U.S.’ competitive edge, prompting Washington to respond with its own export restrictions and industrial incentives.
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What To Know
"As long as the rare earths are used for civil purposes, [the exports] will be approved," a spokeswoman for the commerce ministry, He Yongqian, told a press briefing on Thursday, according to a translated video feed provided by Chinese state media.
The spokeswoman called the new rules "a legitimate measure to safeguard our own rights."
"The purpose is to prevent the illegal export of rare earths that were possibly used for producing weapons of mass destruction," the Chinese official said. "The products only included the raw materials and parts that are already listed in an active list."
She added that China is engaging in "talks on the facilitation of rare metal exports with relevant countries."
"The U.S. interpretation is a major distortion of the reality and the measures taken by China, and it is deepening misunderstanding and fueling panic," she said. "This is not a new policy."
On Wednesday, U.S. Trade Representative Jamieson Greer said China's new rare-earth export restrictions were a "a global supply-chain power grab," Reuters reported.
Greer suggested Beijing could stave off Trump's threat to reimpose triple-digit tariffs on Chinese goods by shelving the measures set to take effect next month.
Trump announced the additional 100 percent tariff on China on October 10, reigniting the trade war with Beijing and throwing financial markets into a tailspin.
Chinese goods currently face U.S. tariffs of 30 percent while China's retaliatory tariffs are at 10 percent.
What People Are Saying
U.S. Trade Representative Jamieson Greer said in a post on X: "China’s expansive rule to control the flow of rare earths is a repudiation of the U.S.-China agreement reached six months ago in Geneva. The administration is prepared to take strong actions if China moves forward with this escalatory new regime."
President Donald Trump, asked by a reporter on Wednesday about prospects for a sustained trade war with China, said: “Well, we’re in one now. Look, we have 100 percent tariff, if we didn’t have tariffs we would be exposed as being a nothing, we would have no defense.”
Chinese Foreign Ministry spokesperson Lin Jian told a briefing on October 15 when asked about rare earths: “China took export controls on relevant items in accordance with the law to better safeguard world peace and regional stability, and fulfill non-proliferation and other international obligations.
"The measures are in line with international practice. China’s position has been consistent and clear. It is the U.S. who asks for talks while threatening high tariffs and new restrictions. This is not the right way to deal with China. We urge the U.S. to correct its wrong approach as early as possible and address relevant issues through dialogue and consultation on the basis of equality, respect and mutual benefit.”
What Happens Next
Despite the flare up in the trade war, Trump is expected to meet his Chinese counterpart, Xi Jinping, late this month at a gathering of the Asia Pacific Economic Cooperation forum in South Korea on October 31 and November 1. It will be their first meeting since Trump returned to the White House in January.
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Update 10/16/2025 5:30 a.m. ET: This story has been updated to include more information.
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