It looks like China has had enough of the Trump administration’s rhetoric. China on Thursday accused the U.S. of stoking panic over its rare earth controls and said Treasury Secretary Scott Bessent had made “grossly distorted” remarks about a top Chinese trade negotiator, rejecting a White House call to roll back the curbs.
The official newspaper of the governing Communist Party also issued a seven-point rebuttal after top U.S. negotiators suggested Beijing could avert Trump’s threat to impose 100% tariffs on Chinese goods by scrapping the measures set to take effect on Nov. 8.
“The U.S.’ interpretation seriously distorts and exaggerates China’s (rare earths export control) measures, deliberately stirring up unnecessary misunderstanding and panic,” He Yongqian, a commerce ministry spokesperson, told a news conference.
“Provided the export licence applications are compliant and intended for civilian use, they will be approved,” she added.
READ The DeepSeek moment: China’s economic threat (
As of October, China has significantly tightened its control over rare earth elements (REEs), imposing strict export restrictions on 12 of the 17 critical REEs. These new rules require foreign companies to obtain special export licenses for products containing even trace amounts of these elements.
Additionally, China has introduced an extraterritorial jurisdiction policy, meaning that products containing Chinese-origin rare earth materials or technology require licenses even when re-exported from third countries. The regulations also mandate detailed supply chain documentation and end-use declarations to ensure compliance.
This move consolidates China’s dominance in the global rare earth market, where it controls about 69% of mining and over 90% of refining capacity.
These measures have raised alarms internationally, particularly in the U.S. and European Union, who warn that China’s export controls could disrupt global supply chains and accelerate economic decoupling from China. U.S. officials have accused Beijing of using rare earths as an economic coercion tool, threatening retaliatory tariffs in response.
READ: US, China impose new port fees as trade war expands to global shipping routes (
China, however, defends its policies as consistent with international standards and claims export licenses will still be granted for civilian use. The tightening of rare earth controls threatens to impact industries such as electric vehicles, electronics, and defense, all of which rely heavily on these critical materials.
“It is hoped the U.S. will cherish the achievements of the earlier economic and trade talks and immediately correct its wrongdoings,” He Yongqian said.
This standoff highlights the broader challenges of economic interdependence amid geopolitical competition. China’s firm stance, coupled with its rejection of U.S. criticism, suggests that rare earths will remain a contentious issue, potentially accelerating efforts by other nations to diversify supply sources.