Trade relations between China and the United States are heating up again. Ahead of the Asia-Pacific Economic Cooperation (APEC) Summit in South Korea — where U.S. President Donald Trump and Chinese President Xi Jinping are expected to meet — Beijing has announced new export controls on rare minerals.
In a statement, China’s Ministry of Commerce said that any product made using Chinese-sourced rare minerals will now require a special export license before being shipped abroad. The ministry said the decision was aimed at protecting China’s “national interests and security.”
Rare minerals are critical to modern technology, used in everything from magnets to advanced electronics. China’s latest move has raised concerns in the United States and other Western countries that rely heavily on these materials for their industries.
According to Bloomberg, the decision appears to be a response to Washington’s recent restrictions on the export of high-end semiconductor chips and manufacturing equipment to China.
Earlier this year, operations at Ford Motor Company’s Chicago plant were briefly halted because of a shortage of rare-earth magnets. The supply crunch also threatened other U.S. automakers, prompting Trump to hold a 90-minute phone call with Xi in early June to push forward trade talks.
Now, with the two leaders preparing to meet in person, China’s new export controls are likely to complicate the discussions. Analysts say Beijing may be using its leverage over rare minerals to increase pressure on Washington ahead of the talks.
While both sides remain open to a possible trade agreement, each is working to strengthen its position. The upcoming APEC summit in South Korea could be a pivotal moment for the future of U.S.–China relations.
