Beijing cited the addition of Chinese companies to a U.S. trade blacklist and Washington’s imposition of port fees on China-linked ships as examples.
China produces over 90% of the world’s processed rare earths and rare earth magnets.
The 17 rare earths are vital materials in products ranging from electric vehicles to aircraft engines and military radars.
Exports of 12 of them are restricted after China’s commerce ministry on Thursday added five – holmium, erbium, thulium, europium and ytterbium – along with related materials.
“China’s export controls are not export bans,” it said.
Reuters, Beijing/Hong Kong, Oct. 12: China called U. S. Sunday, President Donald Trump defended his recent tariffs on Chinese goods as hypocritical and defended his restrictions on the export of equipment and rare earth elements, but he refrained from imposing additional taxes on U.S. S. things.
In response to Beijing’s latest export restrictions, Trump on Friday imposed 100 percent additional tariffs on China’s U.S. S. -bound exports, as well as additional export regulations for essential software by November 1.
A summit between Trump and Chinese President Xi Jinping that is tentatively scheduled for later this month may be derailed by the resurgent trade tensions, which have rocked Wall Street, sent Big Tech shares plunging, and are concerning foreign companies that rely on China’s production of processed rare earths and rare earth magnets.
IN REACTION TO TRUMP.
In his lengthy Truth Social post on Friday, Trump accused Beijing of abruptly escalating trade tensions after the world’s two largest economies reached an uneasy truce six months ago that allowed them to trade goods without exorbitant tariff rates. Beijing’s first direct response to Trump’s claims was the statement issued by the Chinese commerce ministry on Sunday.
Trump remarked, “This trade move is even more surprising because our relationship with China has been very good over the past six months.”.
Its export restrictions on rare-earth elements adhere to a number of U.S. S. measures following last month’s bilateral trade negotiations in Madrid.
Beijing pointed to Chinese businesses joining a U.S. A. Washington’s imposition of port fees on ships associated with China and the trade blacklist are two examples.
“The U. A. actions have seriously damaged China’s interests and damaged the tone of bilateral trade and economic negotiations, and China is adamantly against them,” the ministry stated.
The Chinese did not directly link these U.S. S. measures to its export restrictions on rare-earth elements, claiming that they were prompted by worries about the military uses of these materials during “frequent military conflicts.”.
It also postponed imposing a matching tax on U.S. ships headed to China. A. imported goods, in contrast to earlier in the year when both superpowers gradually increased their tariffs on one another until the U. S. China’s rate was 125%, whereas the US rate was 145%.
‘NEGOTIATION PATH’.
Analysts said that China’s decision to hold off on retaliating in kind to Trump’s opening salvo in this most recent round of trade tensions may allow for a de-escalation negotiation between the two nations.
By providing an explanation for its retaliatory actions, Beijing is also laying out a possible course for future talks. The U is now where the ball is. S. . court,” stated Alfredo Montufar-Helu, managing director of GreenPoint, a strategic advisory firm.
However, Hutong Research stated in a note on Saturday that Beijing may indicate that it no longer prioritizes a long-term agreement with Trump if it decides not to react to his 100 percent tariff hike. This could indicate a decline in confidence in his ability to control hawks or fulfill promises.
An antitrust investigation into U.S. was announced by the market regulator on Friday. A. Qualcomm over the purchase of Israeli chip designer Autotalks in June 2025.
Qualcomm had completed the acquisition without notifying the regulator, according to SAMR, which was made a few hours after the commerce ministry’s response to Trump’s post and tariff hike. The U.S. S. The firm had recognized this.
“Our bureau lawfully began an investigation into Qualcomm’s illegal activities based on unambiguous facts and convincing evidence. “autotalks acquisition,” SAMR stated.
Export restrictions are not export bans, according to China.
Additionally, the commerce ministry refuted Trump’s claim that China was attacking all nations, not just the United States, by using its leading position in processed rare earths and rare earth magnets. S. .
Trump stated on Friday on Truth Social that “other Countries have contacted us who are extremely angry at this great trade hostility, which came out of nowhere.”.
In the world, more than 90% of processed rare earths and rare earth magnets are made in China. The 17 rare earth elements are essential components of everything from military radars to electric cars and airplane engines.
China’s commerce ministry added five of them—holmium, erbium, thulium, europium, and ytterbium—along with related materials on Thursday, restricting exports of twelve of them.
In an attempt to reassure international businesses alarmed by the most recent export restrictions, the commerce ministry said on Sunday that it would encourage compliant trade by offering general-purpose licenses and license exemptions.
“China’s export controls are not export bans,” the statement stated. “Relevant businesses need not worry; any export applications for civilian use that adhere to regulations will be accepted. “.
Editing by William Mallard; reporting by Eduardo Baptista in Beijing and Selena Li in Hong Kong.
