Story perspectives

China's Rare Earth Controls Escalate U.S. Trade Tensions

10/30/2025

Center

China's Export Controls

China imposes export controls on rare earth elements, intensifying the U.S. trade conflict, while its dominance in production raises concerns about global supply.
U.S. President Donald Trump threatened to increase tariffs on Chinese goods by 100%.
At APEC summit, Trump and Xi Jinping (President of China) reached agreement on rare earth access, though details remain unclear.
The Fourth Plenary Session approved the 15th Five-Year Plan, emphasizing high-quality development and self-reliance.

Right

Xi Promotes Cooperation

President Xi Jinping attends the APEC Leaders' Meeting in Gyeongju, signaling Asia-Pacific cooperation.
He urges regional economies to reject dominance and embrace inclusive globalization for sustainable globalization.
The gathering sits against an IMF forecast of slower growth in the region.
China-ASEAN Free Trade Area 3.0 protocol aims to deepen regional integration.
Xi plans talks with leaders, including U.S. President Donald Trump, to address regional development.

History

Historical Context

In 2019, China imposed export controls on rare earth elements, crucial for technology, affecting global supply chains. The U.S. relied on China for about 80% of its rare earth imports, highlighting significant dependency. This move intensified trade tensions reminiscent of the 1930 Smoot-Hawley Tariff Act, which raised tariffs and led to retaliatory measures, prompting the U.S. to seek domestic production alternatives.

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China's Export Controls

China imposes export controls on rare earth elements, intensifying the U.S. trade conflict, while its dominance in production raises concerns about global supply.
U.S. President Donald Trump threatened to increase tariffs on Chinese goods by 100%.
At APEC summit, Trump and Xi Jinping (President of China) reached agreement on rare earth access, though details remain unclear.
The Fourth Plenary Session approved the 15th Five-Year Plan, emphasizing high-quality development and self-reliance.

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