Trade tensions between the US & China have intensified after President Donald Trump imposed 100% tariffs on US bound Chinese goods & announced new export controls on critical software, in response to Beijing’s recent curbs on rare earth elements & equipment.
China’s Commerce Ministry called Trump’s move hypocritical on Sunday, defending its restrictions on exports of rare earth elements, citing concerns over their military applications amid global conflicts.
Beijing, however, stopped short of imposing new tariffs on US products, leaving room for potential negotiations.
The renewed tensions rattled markets, with Big Tech shares tumbling and foreign companies reliant on Chinese rare earth production expressing concern. Analysts note that while China explained the rationale behind its export controls, the ball is now in the US court for de-escalation.
China emphasised that its export curbs are not bans, assuring foreign companies that civilian use export applications complying with regulations would be approved.
The restrictions cover 12 rare earth elements, vital for electric vehicles, aircraft engines & military technologies.
In parallel, China has taken regulatory actions against US tech companies, including Nvidia & Qualcomm, citing anti monopoly violations during ongoing trade discussions. Observers suggest these moves may be leveraged as bargaining tools in broader trade negotiations.
The standoff also threatens to complicate a planned Trump-Xi summit later this month, as both sides weigh tariffs, export controls, and compliance issues in a highly strategic sector.
