China accuses U.S. of ‘panic’ over rare earths, open to trade talks
China on Thursday accused the United States of sowing “panic” over Beijing’s controls over rare earth minerals but said it was open to trade talks to resolve the dispute that threatens to reignite the trade war between the world’s two largest economies.
Ministry of Commerce spokesman He Yongqian said, “The US comment seriously distorts and exaggerates China’s measures, deliberately causing unnecessary misunderstanding and panic.” he told a press conferenceAccording to the state newspaper Global Times.
Last week, Beijing announced sweeping controls on rare earth exports ahead of an expected meeting between President Donald Trump and President Xi Jinping in South Korea. Trump has threatened to impose 100% tariffs on China starting November 1 or sooner in retaliation.
U.S. Trade Representative Jamieson Greer accused China of trying to control the world’s technology supply chains in an interview with CNBC on Tuesday. Beijing’s actions will determine whether tariffs go into effect, Greer said.
Greer told CNBC that Trump wants to work with Beijing and is scheduled to meet with Xi in South Korea towards the end of this month. Beijing is open to negotiations with the US China said on Thursday.
China points to the USA
China’s Ministry of Commerce said the export restrictions were aimed at protecting its national security by preventing the misuse of rare earth elements in military applications such as weapons of mass destruction.
The spokesman pointed out US restrictions on China on semiconductors and foreign content rules aimed at pushing Beijing out of North American supply chains.
“The accusations coming from the United States reveal that the United States is projecting its own behavior onto others,” he said.
Rare earths are used to make magnets, which are important inputs in US weapons platforms such as the F-35 fighter jet, Tomahawk cruise missiles and Predator drones. Rare earth magnets are also used in commercial civil applications such as robotics, electric vehicles and the semiconductor industry.
White House leans into industrial policy
Treasury Secretary Scott Bessent told CNBC on Wednesday that the Trump administration may take stock in other companies in the wake of China’s rare earth restrictions.
“I wouldn’t be surprised,” Bessent said when asked about additional equity stakes. “When we get China’s announcement about rare earths this week, you realize we have to be self-sufficient or we have to be sufficient to our allies.”
The treasury secretary accused China of using its dominance in rare earth refining and processing to drive down prices and push foreign rivals out of the market. Besssent said the Trump administration will impose price floors across several industries to combat China’s market manipulation.
“When you’re dealing with a non-market economy like China, you have to do industrial policy,” Bessent told Sara Eisen at CNBC’s Americas Investment Forum in Washington, D.C.
