Rare earths as a power factor Trump escalates tariff dispute - China threatens retaliation
China sharply criticizes Donald Trump's latest tariff announcement. The trade conflict is escalating again in the dispute over important raw materials. Beijing threatens to take its own measures.
12.10.2025, 07:28
dpa
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- China accuses the US of double standards in dealing with trade rules and criticizes its expansion of export controls and national security arguments.
- Beijing is threatening countermeasures in response to Trump's announcement of new 100 percent tariffs from November 1 and is calling for a return to dialog and previous trade agreements.
- As the world's largest producer of rare earths, China sees its export controls as a legitimate means of safeguarding national interests in geopolitically sensitive industries.
Following the announcement of further tariffs by President Donald Trump, China is accusing the USA of double standards and threatening to take countermeasures. Washington has long been generalizing the principle of national security, abusing export controls, applying discriminatory measures against China and unilaterally extending its jurisdiction over products such as semiconductors and computer chips, the Ministry of Commerce in Beijing said.
China also accused the USA of disrupting global supply chains with these measures. Beijing is calling on the US to correct its "wrong approach", uphold the results of past trade talks and resolve mutual concerns through dialog.
China threatens countermeasures
"If the US stubbornly sticks to its course, China will resolutely take corresponding measures to protect its legitimate rights and interests," the ministry said.
The ministry was responding to a question about Trump's declaration that he intends to impose additional tariffs of 100 percent on imports from China from November 1. This followed China's announcement to extend export controls on rare earths.
The ministry justified the measure as legitimate in order to improve its own export control system in accordance with the law. The authority referred to the importance of rare earths for military use and the recurring conflicts in the world.
The role of rare earths
China is a major global producer of these important raw materials and therefore has decisive leverage in negotiations with the USA. The raw materials and magnets made from them are needed in industry as well as the high-tech and defense sectors. They are used in numerous products ranging from electric motors and semiconductors to turbines.
The mineral resources are found in high concentrations in China. Contrary to what their name suggests, rare earths are not necessarily rare. However, the extraction of these mineral resources is difficult because they are bound up in other raw materials. China has specialized in the process.
