China Defends Rare-Earth Curbs, Signals Negotiation Path

Beijing on Sunday rejected U.S. criticism of its recent export controls on rare-earth elements, calling President Trump’s retaliatory tariffs hypocritical while stopping short of immediate reciprocal levies.

Washington on Friday announced 100% tariffs on additional Chinese exports and new export controls on critical software, moves that rattled markets and raised questions about an upcoming summit between the two leaders.

China’s commerce ministry said its tighter controls — which expanded restrictions to 12 rare-earth materials by adding holmium, erbium, thulium, europium and ytterbium — were prompted by concerns over military uses amid heightened geopolitical tensions. Beijing also pointed to recent U.S. measures, including blacklisting Chinese firms and port fees, as damaging the atmosphere for talks.

China, which supplies over 90% of processed rare earths and magnets used in EV motors, turbines, electronics and defense systems, emphasized the measures are export controls not bans. Authorities pledged general-purpose licenses and exemptions to facilitate compliant civilian shipments.

Analysts said China’s restraint in avoiding immediate tit-for-tat tariffs could preserve a negotiation path, even as regulatory pressure on U.S. tech firms, including probes into Nvidia and Qualcomm, adds another lever in the dispute.