China: Rare earth export control measures are 'legitimate', blames US for rising tension

China’s Commerce Ministry is out with a statement and it doesn’t look like they want a quick deal with the USA:China’s rare earth export control measures are “legitimate”Rare earth export control measures designed to better safeguard world peace and regional stabilityRare earth export control measures designed to better fulfill international obligations such as non-proliferationRare earth export control measures mainly target the military applications of medium and heavy rare earth metals and the “current turbulent global situation and frequent military conflicts”Rare earth export control measures do not constitute a ban on exports; applications that meet the requirements will be granted licensesPrior to the announcement of these measures, China had notified relevant countries and regions through bilateral export control dialogue mechanismsChina is willing to strengthen dialogue and exchanges on export controls with all countries to better safeguard the security and stability of global industrial and supply chainsConfident latest rare earth export control measures will have “extremely limited impact” on production and supply chainsU.S. announcement of 100% tariffs on U.S.-bound Chinese imports represent a classic case of “double standards”Since the U.S.-China economic and trade talks in Madrid, the U.S. has continuously introduced a series of new restrictions against ChinaIt added multiple Chinese entities to its export control entity list and specially designated nationals listU.S. has arbitrarily expanded the scope of regulated enterprises through “penetration rules,” affecting thousands of Chinese companiesDisregarding China’s concerns and goodwill, U.S. has insisted on implementing Section 301 measures targeting China’s maritime, logistics, and shipbuilding industriesU.S. actions have severely harmed China’s interests and undermined the atmosphere for bilateral economic and trade talks, China firmly opposes themThreatening to impose high tariffs at every turn is not the right way to engage with ChinaChina’s position on tariff wars has been consistent: we do not want to fight, but we are not afraid to fightChina urges the U.S. to promptly correct its erroneous practicesWe must properly manage difference and uphold the stable, healthy, and sustainable development of China-U.S. economic and trade relationsShould the U.S. persist in its course, China will resolutely take corresponding measures to safeguard its legitimate rights and interestsChina has implemented export control measures with prudence and moderationAny rare earth export applications for civilian use that comply with regulations will be approved, relevant enterprises need not worryU.S. decision to impose port fees on relevant Chinese vessels meant China “had no choice but to take countermeasures”China’s decision to impose a special port fee on U.S.-related vessels are necessary defensive actionsI don’t like the sound of any of this.
This article was written by Adam Button at investinglive.com.

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💬 DMK Insight

**DMK Insight:** China's recent assertion of its rare earth export controls as "legitimate" signals a strategic pivot that could complicate U.S.-China trade relations. For traders and investors, this development underscores the importance of monitoring geopolitical tensions, particularly in sectors reliant on rare earth materials. As the global demand for these resources continues to rise, companies in the supply chain may face increased volatility and potential supply disruptions.