1:30President Donald Trump at the White House in Washington, Oct. 9, 2025 and Chinese President Xi Jinping in Beijing, Sept. 30, 2025.Getty Images/AP
Mere weeks prior to the anticipated summit between President Donald Trump and Chinese President Xi Jinping in South Korea, China significantly broadened its limitations on rare earth elements, an action the Trump administration views as a pronounced intensification in China’s endeavors to fortify its hold on worldwide manufacturing.
China’s updated regulations, which pertain to all nations, are scheduled to be enacted in stages on Nov. 8, followed by Dec. 1.
"It represents a demonstration of economic force against every nation globally," Ambassador Jameison Greer expressed Wednesday during a news conference alongside Treasury Secretary Scott Bessent. "This will empower China to dominate essentially the entire global economy and the technology distribution network."
This development incited Trump to threaten complete tariffs on all commodities from China commencing Nov 1st. To date, Beijing has not displayed any overt indication of retracting its controls, but Bessent maintains optimism.
"I am hopeful that this situation can be defused. Ultimately, we retain confidence in the robust bond between President Trump and President Xi," Secretary Bessent remarked. " We’ve engaged in considerable discourse with the Chinese in recent days, and we anticipate further dialogue this week."
President Donald Trump at the White House in Washington, Oct. 9, 2025 and Chinese President Xi Jinping in Beijing, Sept. 30, 2025.Getty Images/AP
Certain experts suggest Beijing is adopting a forceful approach to amplify its influence during the forthcoming discussions, all while undermining U.S. initiatives to reinforce its industrial footing.
Bessent conveyed Wednesday that Trump is still predicted to convene with Xi in South Korea despite the threats of levies.
The Chinese administration affirmed on Sunday that it does not desire a trade conflict, yet it will not evade one either.
"Concerning the tariff matter, China’s stance endures: we do not seek a trade dispute, but we do not fear one," China’s Ministry of Commerce articulated in a Sunday statement. "Should the U.S. persist on its path, China will decisively institute suitable countermeasures to defend its lawful entitlements and interests."
China’s measure to restrict rare Earth minerals could possess repercussions on a global scale.
The constraints impact a substantial sector of the U.S. and global economic landscape. Rare earths are indispensable for generating computer chips, essential for an array of items such as smartphones and AI infrastructures. They are similarly pivotal for fabricating magnets to energize drones, robots, and vehicles. Rare earths are additionally critical for defense technologies, encompassing F-35 fighter aircraft, Tomahawk projectiles, and radar apparatus.
The limitations denote that overseas entities must procure approval from the Chinese government to dispatch products containing even minuscule traces of particular rare earths originating from China.
Considering China’s overwhelming dominance within this domain, this could engender noteworthy national security outcomes.
Ambassador Greer furnished an illustration on Wednesday, asserting that "should a car be manufactured in America and distributed in Mexico, one would need to secure authorization from China before completing the sale due to the chips integrated into the vehicle."
The vast reach of this mandate from China mirrors the manner in which the U.S. has deployed export regulations to govern chip production internationally utilizing American technology.
These extensive, novel limitations symbolize, according to some analysts, China’s aspiration for the U.S. to revoke its own export supervision, and that this contention transcends mere tariffs.
Sourse: abcnews.go.com
