Rare Earth Export Curbs 2025: U.S. Threatens China With ‘Strong Action’ and rallies allies for a coordinated global response. The United States has sharply criticized China’s newly announced rules tightening control over rare earth mineral exports, calling them a violation of a bilateral economic understanding reached just six months ago in Geneva.
In a strongly worded statement, U.S. officials accused Beijing of ignoring commitments to ease trade tensions and warned of potential retaliatory measures. “China’s expansive rule to control the flow of rare earths is a repudiation of the U.S.-China agreement reached six months ago in Geneva. The Administration is prepared to take strong actions if China moves forward with this escalatory new regime,” the U.S. statement said.
Beijing introduced additional export restrictions on rare earth minerals, citing national security concerns and alleging that foreign firms were using Chinese supplies for military purposes. China dominates the rare earths industry, accounting for about 70 per cent of global mining output and nearly 90 per cent of processing capacity. The minerals are critical for manufacturing high-technology products, ranging from smartphones and electric vehicles to wind turbines and defence systems.
Rare Earth Export Curbs 2025: U.S. Threatens China With ‘Strong Action’
U.S. Coordinates Global Response
The move has triggered alarm in Washington, where Treasury Secretary Scott Bessent said the United States is coordinating a global response. “We’re going to be speaking with our European allies, with Australia, with Canada, with India and the Asian democracies,” Bessent told CNBC on Wednesday. “We’re going to have a fulsome group response to this because bureaucrats in China cannot manage the supply chain or the manufacturing process for the rest of the world.”
Beijing’s decision has also drawn a sharp political response from U.S. President Donald Trump, who warned of imposing 100 per cent tariffs on Chinese goods if Beijing does not reverse course.
The rare earth dispute threatens to unravel the fragile economic truce reached in Geneva on May 12, 2025. In that joint statement, the United States and China agreed to temporarily suspend some tariff increases and resume dialogue on trade relations. The agreement established a mechanism for continued discussions led by Vice Premier He Lifeng for China and Treasury Secretary Bessent and U.S. Trade Representative Jamieson Greer for the United States.
“China Versus the World”
Bessent said Washington has already begun consultations with allies. “This is China versus the world,” he told Fox Business. “They have pointed a bazooka at the supply chains and the industrial base of the entire free world.”
China’s rare earth exports are especially vital to the United States, the European Union, and India, which rely heavily on Chinese supplies for strategic industries.
Japan Calls for G7 Unity
Japan’s Finance Minister Katsunobu Kato emphasized the need for a unified response from the Group of Seven countries amid concerns over China’s recent export controls on rare earths.
Speaking to reporters in Washington after a G7 gathering alongside IMF and World Bank meetings, Kato said, “Japan is deeply concerned about these measures. I called for G7 nations to unite and respond.”
Finance chiefs from leading developed nations discussed a possible coordinated reaction to China’s new rare earth export restrictions and the ongoing tensions between Beijing and Washington.
China’s New Rules Explained
China’s newly announced regulations mandate that foreign companies secure approval from the Chinese government before exporting items that contain even minimal amounts of certain rare earth elements sourced from China.
The country holds a dominant position as the producer of over 90 per cent of the world’s processed rare earths and magnets, including key materials used in everything from fighter jets to electric vehicles.
Barbs Exchanged Between Washington and Beijing
Chinese state media issued a seven-point response to U.S. demands that Beijing roll back its rare earth export controls, as both countries continue to exchange accusations and blame each other for escalating tensions.
U.S. Trade Representative Jamieson Greer described China’s new restrictions as “a global supply-chain power grab” and indicated that Beijing could avoid President Donald Trump’s threat to reinstate triple-digit tariffs on Chinese imports by abandoning the measures set to begin on November 8.
Beijing insists it informed Washington in advance of the new licensing rules and argues that the restrictions align with policies already in place in other major economies.
Since a phone call in September between Trump and Chinese President Xi Jinping, the two nations have been locked in a heated exchange, each accusing the other of heightening tensions ahead of a planned meeting between the leaders.
Washington Prepares Joint Response With Allies
U.S. Treasury Secretary Scott Bessent reaffirmed Washington’s plan to work closely with its allies, including India, to prepare a “fulsome group response” to China’s latest export restrictions on rare earth minerals.
Bessent said, “We have already been in touch with the allies. We will be meeting with them this week and, you know, I expect that we will get substantial global support from the Europeans, from the Indians, from the democracies in Asia.”
At the same time, Washington has imposed an additional 50 per cent tariff on imports from India, even as it continues to refer to New Delhi as a “key partner” in securing supply chains. India, which possesses limited reserves of rare earths, continues to face domestic manufacturing challenges.
China Tightens Control Over Rare Earth Supplies
China’s dominance in the rare earth market remains unrivaled. It is responsible for about 70 per cent of mining and roughly 90 per cent of the processing of these minerals, which are crucial in the manufacturing of electronics, automobiles, renewable energy systems, and defence equipment.
Beijing’s decision to restrict exports has raised fears of global supply disruptions. Following the announcement, President Trump lashed out, threatening 100 per cent tariffs on Chinese goods. The White House accused China of attempting to “weaponise its dominance in rare earths to gain leverage in geopolitical disputes.”
“This is China versus the world,” Bessent reiterated. “They have pointed a bazooka at the supply chains and the industrial base of the entire free world.”
Also Read: US-China rare Earth minerals fight explained
Trump Tempers Rhetoric
After initially threatening harsh tariffs, President Trump appeared to soften his tone, posting on Truth Social that China’s economic troubles would “all be fine.” He added, “Highly respected President Xi just had a bad moment. He doesn’t want depression for his country, and neither do I. The USA wants to help China, not hurt it!”
However, the 100 per cent tariff proposal remains scheduled to take effect by November 1.
U.S. Officials Blast China as ‘Unreliable’
In a rare joint appearance, U.S. Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent accused China of betraying the Geneva trade truce. They described Beijing’s new export controls as “economic coercion” and “a global supply chain power grab.”
“If China wants to be an unreliable partner to the world, then the world will have to decouple,” Bessent said. At the same time, Greer suggested the U.S. still hoped to de-escalate. “The scope and the scale is just unimaginable, and it cannot be implemented,” he said.
Also Read: Trump Announces Breakthrough US-China Trade Deal Amid Rare Earth and Tariff Tensions
Global Economic Concerns Rise
China processes around 90 per cent of the world’s rare earths and magnets, materials that are critical for advanced manufacturing. Its dominance is a key vulnerability for the U.S. and its allies.
Beijing’s latest rules require foreign companies to obtain government approval for exporting products with even small amounts of rare earths and to disclose intended uses.
Beijing has also announced similar restrictions on lithium batteries and graphite, materials essential to the global tech supply chain.
The flare-up comes just ahead of an expected meeting between Trump and Xi Jinping, raising fears that the fragile truce could collapse into a renewed trade war.
Europe Voices Concern
Spain’s Economy Minister Carlos Cuerpo called China’s new restrictions a “lose-lose scenario for everyone.” Speaking at Semafor’s World Economy Summit in Washington, he said, “We are very concerned because of the potential impact. This is another fragmentation of international trade — that’s not the way the EU wants to go.”
Cuerpo confirmed that the issue would be discussed during IMF and World Bank meetings and in talks with the White House this week. Europe, like the U.S. and Asia, remains heavily dependent on Chinese rare earths for its renewable energy and manufacturing sectors.
Outlook: A Growing Trade Rift
As the dispute widens, analysts warn that a prolonged rare earth standoff could reshape global trade patterns. The U.S. is now rallying its allies to diversify supply chains and invest in alternative mining and processing hubs outside China — a task that could take years.
Despite the escalating rhetoric, both Washington and Beijing have signaled an interest in avoiding a full-blown economic confrontation. But with the Geneva truce fraying and new export rules taking effect in November, the next few weeks could determine whether this latest flare-up becomes a defining flashpoint in global trade.
