China on Thursday accused the U.S. of making “panic” over Beijing’s controls on uncommon earth minerals, however indicated it’s open to commerce talks to resolve a dispute that has threatened to reignite a commerce battle between the world’s two largest economies.
“The US interpretation severely distorts and exaggerates China’s measures, intentionally creating pointless misunderstanding and panic,” Ministry of Commerce spokesperson He Yongqian informed a information convention, in accordance with the state newspaper International Occasions.
Beijing final week introduced sweeping controls on uncommon earth exports forward of an anticipated assembly between President Donald Trump and President Xi Jinping in South Korea. Trump has threatened to impose 100% tariffs on China beginning Nov. 1 or sooner in retaliation.
U.S. Commerce Consultant Jamieson Greer accused China of attempting to regulate the world’s expertise provide chains in an interview with CNBC on Tuesday. Beijing’s actions will decide whether or not the tariffs take impact, Greer mentioned.
Trump needs to work with Beijing and remains to be scheduled to satisfy with Xi in South Korea later this month, Greer informed CNBC. Beijing is open to talks with the U.S., China’s He mentioned Thursday.
China factors finger at U.S.
China’s Ministry of Commerce mentioned its export restrictions intention to guard its nationwide safety by stopping the misuse of uncommon earths in army functions like weapons of mass destruction.
The spokesperson He pointed to restrictions the U.S. has imposed towards China on semiconductors and overseas content material guidelines that intention to push Beijing out of North American provide chains.
“The accusations from the US reveal that the US is projecting its personal conduct onto others,” He mentioned.
Uncommon earths are used to make magnets which might be essential inputs in U.S. weapons platforms just like the F-35 warplane, Tomahawk cruise missiles and Predator drones. Uncommon earth magnets are additionally utilized in industrial civilian functions corresponding to robotics, electrical automobiles and the semiconductor business.
White Home leans into industrial coverage
Treasury Secretary Scott Bessent informed CNBC on Wednesday that the Trump administration might take fairness stakes in different corporations within the wake of China’s uncommon earth restrictions.
“I would not be stunned,” Bessent mentioned when requested about further fairness stakes. “Once we get an announcement like this week with China on the uncommon earths, you understand we now have to be self-sufficient, or we now have to be adequate with our allies.”
The Treasury secretary accused China of utilizing its dominance in uncommon earth refining and processing to slash costs and push overseas rivals out of the market. Bessent mentioned the Trump administration will impose worth flooring throughout a spread of industries to fight market manipulation by China.
“When you’re dealing with a nonmarket financial system like China, then you need to train industrial coverage,” Bessent informed Sara Eisen at CNBC’s Spend money on America Discussion board in Washington, D.C.
