Story perspectives

China Tightens Rare Earth Exports Amid Trump Tariff Threat

10/19/2025

Summary

China's Export Controls

China announced strict export controls on rare earth elements to strengthen its global supply dominance, which accounts for about 70% of the market.
Donald J. Trump, former President of the United States, threatened a 100% tariff on Chinese goods.
He later acknowledged that such tariffs were unsustainable.
As the two nations prepare for a meeting at the APEC summit in South Korea, the situation remains precarious for global supply chains.

Summary

Bessent Leads Trade Talks

Upcoming US-China trade talks will occur next week in Malaysia, led by Treasury Secretary Scott Bessent and Vice Premier He Lifeng.
Bessent characterized previous discussions as "frank and detailed," aiming to reduce tensions following President Donald Trump's threat of a 100% tariff on Chinese goods.
Despite earlier escalations, Trump remains optimistic about reaching an agreement with President Xi Jinping.
The IMF warns that renewed trade conflict could significantly hinder global growth, raising concerns among finance leaders.
South Africa's central bank governor highlighted potential price depressions in other countries due to these tensions.

History

Historical Context

The Export Administration Act of 1979 established U.S. government control over sensitive technology exports, driven by national security concerns. This legislation has evolved, notably with the Export Control Reform Act of 2018, as the U.S. faces challenges from China, which holds a 70% market share in rare earth elements. Current U.S.-China trade tensions reflect historical conflicts over resource control and economic dominance.

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China's Export Controls

China announced strict export controls on rare earth elements to strengthen its global supply dominance, which accounts for about 70% of the market.
Donald J. Trump, former President of the United States, threatened a 100% tariff on Chinese goods.
He later acknowledged that such tariffs were unsustainable.
As the two nations prepare for a meeting at the APEC summit in South Korea, the situation remains precarious for global supply chains.

1 / 3