Home Commodities Rare Earths Become Latest Flashpoint in US-China Tensions

Rare Earths Become Latest Flashpoint in US-China Tensions

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U.S.-China Rare Earths Dispute Escalates as Beijing Rebuts Washington’s Criticism

Chinese state media issued a detailed seven-point rebuttal on Thursday, rejecting U.S. calls to reverse its rare earth export controls. The exchange marks the latest escalation in U.S.-China trade tensions, as both sides continue to trade accusations and defend their policies.

On Wednesday, U.S. Trade Representative Jamieson Greer criticized Beijing’s new export restrictions, calling them “a global supply-chain power grab.” Greer suggested China could ease President Donald Trump’s threat to reimpose heavy tariffs on Chinese goods by withdrawing the measures set to take effect on November 8.

Beijing, however, insisted that it had notified Washington ahead of time and that the controls are in line with policies used by other major economies. The government defended the new licensing system as consistent with international practice and necessary for protecting national interests.


Tensions Deepen Ahead of Trump-Xi Meeting

The dispute has intensified since a September phone call between Trump and Chinese President Xi Jinping, with both leaders accusing the other of fueling trade tensions ahead of a possible bilateral meeting.

Beijing attributes the rising friction to the U.S. Commerce Department’s decision in late September to expand its Entity List, targeting Chinese and international firms accused of bypassing chipmaking export restrictions. Washington, meanwhile, points to China’s recent critical minerals measures, which Trump described as “shocking.”

In a series of infographics published by People’s Daily, the Chinese Communist Party’s official newspaper accused the U.S. of overstating national security risks and abusing export controls. The paper noted that Washington maintains a control list of over 3,000 items, while Beijing’s list includes around 900.


China Defends Its Export Control Policy

People’s Daily emphasized that China’s rare earth restrictions align with international norms and have long been part of global trade practice. Global Times, another state-run publication, wrote that Washington should not be surprised by China’s “tit-for-tat” response, accusing the U.S. of repeatedly breaking promises in trade negotiations.

The editorial added that the shift in trade tone was not unexpected and warned that further policy confrontations could follow if mutual trust continues to erode.