China defends rare earth export restrictions as ‘legitimate’

On Sunday, China defended its new decision Export controls on rare earths As a “legitimate” measure under international law, in response to US accusations of economic coercion after Washington announced broad retaliatory tariffs and export restrictions.

The Chinese Ministry of Commerce It said the controls, issued on October 9, were part of Beijing’s efforts to strengthen its export control regime and “better protect global peace and regional stability” amid what it described as a turbulent global security environment.

The measures, which now cover not only rare earth materials but also related intellectual property and technologies, were announced just weeks before a potential meeting between the US president. Donald Trump And Chinese leader Xi Jinping.

A Commerce Ministry spokesman said, “These controls do not constitute an export ban. Applications that meet the requirements will be approved.” “China has fully assessed the potential impact of these measures on the supply chain and is confident that the impact will be very limited.”

Beijing’s new restrictions also require foreign entities to obtain a license to export products containing more than 0.1% domestically sourced rare earth elements, or manufactured using extraction, refining, magnet-making or recycling technology in China. Requests for items that can be used for weapons or other military purposes will be rejected.

Shortly after Beijing tightened export controls on rare earth elements, the European Chamber of Commerce in China said there was a backlog of export license applications awaiting approval, adding that the new restrictions “add further complexity to global rare earth supply chains.”

In response to Beijing’s move, Trump announced on October 10 New definitions 100% on imports from China “On top of whatever tariff they currently pay” as of November 1. Trump also said that the United States, on the same date, would also impose export controls on “any and all critical software.”

Stock markets fell After Trump said Social truth That there is “no way to let China hold the world ‘captive’” with its rare earths policy – erase 2 trillion dollarsn in market value.

On Sunday local time, China’s Ministry of Commerce accused the United States of “double standards,” noting that the US watch list covers more than 3,000 items, compared to less than 1,000 items on the Chinese list.

China It represents about 70% of the global supply The much-needed minerals were repeatedly used as a bargaining chip in trade discussions.

Hours after tightening export controls on rare earth elements, Beijing also announced it would begin American ship shipping Ships are docking at Chinese ports starting October 14, reflecting new US tariffs on Chinese ships arriving at US ports, which are set to take effect on the same day.

The United States represents just 0.1% of the global shipbuilding industry, compared to 53.3% for China, according to the Center for Strategic and International Studies.

China’s Ministry of Commerce defended its mutual decision, calling it “necessary negative defensive measures.” She added that the American actions “seriously undermined the atmosphere of economic and trade talks between the two sides.”

Senior American and Chinese officials met for trade negotiations in Geneva last May, the first since Trump launched a global trade war. A follow-up meeting in London in June established a trade “framework”, while a third round of high-level talks was held a month later, with both sides reporting progress in the negotiations.

Recent trade meetings in Madrid in September resulted in a “basic framework consensus” on the divestment of Chinese-owned companies. TikTokahead of the deadline to either sell its US business or shut down the social media app in the country.

On September 19, Trump and Xi spoke by phone but did not reach a final agreement on TikTok. After the call, Trump announced that he and Xi had agreed to meet on the sidelines of the Asia-Pacific Economic Cooperation Forum during the last week of October in Gyeongju, South Korea.

While China has remained silent about future meetings, Trump also said that he will visit China early next year, and that Xi will come to the United States later.

However, on Friday, Trump threatened in a social media post to cancel his upcoming meeting with… something After China’s recent tightening of export restrictions on rare earths.

– CNBC Annie Bao and Evelyn Cheng Contribute to this story.