Trump Accuses China of Hostility After Beijing Tightens Rare Earth Export Controls
In another sharp escalation of U.S.–China tensions, President Donald Trump has condemned Beijing’s surprise decision to impose sweeping export controls on rare earth minerals — a move that could have far-reaching implications for global technology and manufacturing industries.
Calling China’s decision “hostile and shocking,” Trump accused Beijing of weaponizing critical mineral supplies that are essential for producing everything from electric vehicles and smartphones to semiconductors and defense systems.
However, China has pushed back, arguing that Washington’s own aggressive trade measures and restrictions on Chinese companies provoked the latest confrontation. The result has been a rapid deterioration in relations between the world’s two largest economies, reviving memories of past trade wars and shaking global markets.
Beijing and Washington Trade Blame Over Escalation
According to the Chinese government, the latest move is a direct response to Washington’s expansion of export restrictions on Chinese technology firms. U.S. officials had recently added hundreds of Chinese entities to its export control list, limiting their access to American-made software and high-end semiconductors.
Beijing said such “unreasonable suppression” left it with little choice but to strengthen its own controls on the export of rare earth minerals — resources China dominates globally, producing over 70% of the world’s supply.
Trump, meanwhile, swiftly retaliated. Over the weekend, he announced plans to restore tariffs on Chinese imports, pushing them to “triple-digit levels” in response to what he called “China’s blatant economic aggression.” The Chinese Commerce Ministry quickly vowed to take “corresponding measures,” signaling that the tit-for-tat cycle may intensify in the weeks ahead.
Markets Rattled as Trade Tensions Rise Again
The renewed economic friction has sent shockwaves through global markets. Investors fear that another prolonged trade war could disrupt global supply chains already struggling from earlier disputes and the lingering effects of the COVID-era trade slowdowns.
The uncertainty is particularly worrying for industries that depend heavily on rare earth elements — such as electric vehicle manufacturers, chipmakers, and defense contractors. Any restrictions on supply could drive up production costs worldwide and further destabilize global technology markets.
The latest flare-up also threatens to undo the progress made during months of trade negotiations, with analysts now questioning whether a planned meeting between Trump and Chinese President Xi Jinping in South Korea at the end of the month will proceed as scheduled. Trump hinted he might cancel, though U.S. Treasury Secretary Scott Bessent told Fox News he still expects the talks to take place.
China Says U.S. Provoked the Showdown
China’s Ministry of Commerce maintained that it remains open to dialogue but accused Washington of “speaking of talks while wielding threats.” Chinese analysts argue that the U.S. escalated tensions first by expanding its list of sanctioned entities in late September, a move they view as a deliberate provocation.
Jin Canrong, a professor of international relations at Renmin University in Beijing and a well-known government adviser, dismissed Washington’s outrage as hypocritical.
“After taking a bite at China, the U.S. now pretends to be the victim,” Jin wrote on the Chinese social media platform Weibo. “China’s response was measured and predictable.”
From Cooperation to Confrontation
Just months ago, Washington and Beijing appeared to be moving toward a fragile truce. Trade talks held in Madrid in September had shown signs of progress, and a subsequent phone call between Xi and Trump was described by both sides as constructive. Xi reportedly warned Trump against “unilateral trade restrictions,” cautioning that such steps could jeopardize ongoing cooperation.
But just 10 days after that call, the U.S. expanded its export restrictions, targeting subsidiaries of already sanctioned Chinese companies and effectively doubling the number of firms under control. For Beijing, this move crossed a red line.
Wu Xinbo, dean of the Institute of International Studies at Fudan University and an advisor to China’s foreign ministry, said Washington’s decision reflected bad faith.
“From China’s perspective, this is extremely malicious,” Wu said. “If the U.S. still hasn’t realized that these actions will have consequences, then it is either incompetent or deliberately seeking confrontation.”
Beijing Vows Countermeasures
On Sunday, China’s commerce ministry reiterated that the U.S. actions — including plans to impose new fees on Chinese-built ships docking at American ports — had “seriously damaged bilateral relations.”
It urged Washington to preserve “the hard-won progress” from earlier negotiations and warned of firm countermeasures should Trump proceed with his tariff threats.
Trade experts say this latest round of escalation could easily spiral into another damaging economic standoff. Paul Triolo, a China and technology analyst at the consulting firm Albright Stonebridge Group, described the situation as “a step back toward the edge of the abyss.”
“We’ve been here before, but this time the stakes are much higher,” Triolo said. “Both sides now understand just how painful this can get.”
Deja Vu: Another Trade War on the Horizon
The current crisis echoes last spring’s bitter trade dispute, when tariffs on Chinese and American goods reached near-embargo levels. Although both countries eventually agreed to ease tariffs following talks in Geneva, that fragile peace was short-lived.
In the months since, the Trump administration has introduced new restrictions — including bans on global companies using AI chips from Huawei and tighter controls on chip-design software destined for Chinese firms. Trump even floated the idea of revoking U.S. visas for thousands of Chinese students studying in technology-related fields.
Such actions have only deepened mistrust and reinforced China’s determination to reduce its dependence on U.S. technology and critical imports. Analysts warn that if the confrontation continues, it could accelerate the “technological decoupling” of the two economies — dividing the global tech landscape into rival camps.
Uncertain Future for U.S.–China Relations
With tensions rising on multiple fronts — from technology and trade to security and geopolitics — experts say the coming weeks will be crucial. Whether Trump and Xi meet in South Korea could determine if dialogue continues or if both sides slide into another full-blown trade war.
For now, both governments are standing firm. Trump insists the U.S. “will not be bullied,” while Beijing maintains it “will not yield to pressure.”
What began as a dispute over export lists and mineral controls has once again become a test of power and political will — one that could shape the future of the global economy for years to come.