Trump Warns China Over Rare Earth Export Controls

Trump Warns China Over Rare Earth Export Controls

US President Donald Trump has declared that there is "no reason to meet" with Chinese President Xi Jinping following China's recent imposition of strict export controls on rare earth elements. This move has been described by Trump as "very hostile" and has prompted him to consider significant countermeasures, including a potential "massive increase of tariffs" on Chinese imports.

In a post on Truth Social, Trump expressed his concerns about China's actions, stating, "Some very strange things are happening in China! They are becoming very hostile, and sending letters to countries throughout the world, that they want to impose export controls on each and every element of production having to do with rare earths." He noted that several nations have reached out to the US, expressing their anger at what he termed "great trade hostility."

Trump highlighted the unexpected nature of China's move, given the previously positive relationship between the two countries over the past six months. He remarked, "I have always felt that they've been lying in wait, and now, as usual, I have been proven right! There is no way that China should be allowed to hold the world 'captive.'" He described the export controls as "sinister and hostile," emphasizing that the letters from China detailed specific elements they intend to restrict.

The timing of China's announcement coincided with a significant peace breakthrough in the Middle East, which Trump found particularly inappropriate. He questioned whether this timing was coincidental, stating, "The Chinese letters were especially inappropriate in that this was the day that, after three thousand years of bedlam and fighting, there is peace in the Middle East."

Trump was scheduled to meet Xi at the APEC summit in South Korea in two weeks but suggested that this meeting may not occur. He stated, "I was to meet President Xi in two weeks, at APEC, in South Korea, but now there seems to be no reason to do so."

In response to China's actions, Trump indicated that the US would take financial countermeasures. He asserted, "For every element that they have been able to monopolise, we have two," and expressed that while the situation might be painful, it could ultimately benefit the US.

China's new restrictions on rare earth exports include five additional elements, bringing the total to 12 out of 17 types now under control. These measures require export licenses for both the elements and related technologies, affecting sectors such as military and semiconductors. The Chinese Commerce Ministry stated that the restrictions aim to "safeguard national security and interests" and prevent misuse in sensitive fields.

As tensions rise, the implications of these developments on US-China trade relations remain uncertain, with both sides preparing for potential economic confrontations in the near future.