• Source:JND
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China’s Ministry of Commerce unveiled sweeping new export restrictions on rare earths and other strategic materials, vital for the US defence and technology industries. The move is the latest escalation in the intensifying trade dispute between the two largest economies. A Chinese ministry spokesperson warned that Washington’s approach of “threatening high tariffs at every turn” is driving both nations toward a point of no return. “We do not want to fight, but we are not afraid to fight,” the statement declared, accusing the US of applying “double standards” in trade negotiations.

US President Donald Trump said on Friday that he would be adding additional tariffs on Chinese products starting November 1, citing China's "extraordinarily aggressive" export restrictions on rare-earth minerals. Trump threatened to cancel a planned meeting with Chinese President Xi Jinping later this month if Beijing failed to adjust its policies.

The statements sparked significant volatility on Wall Street, with major indexes experiencing their sharpest decline in six months. Hours following the imposition of the tariffs, Trump signalled the possible export controls over crucial software and AI technologies.

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Beijing Defends Its Measures

In response to the US, China justified its restrictions as legitimate steps taken to protect national security and the stability of global supply chains. The Ministry of Commerce reiterated that it is still open to enhancing dialogue and exchanges on export controls with other countries. "These actions have heavily damaged China's interests and seriously harmed the atmosphere of the economic and trade talks between the two sides," the ministry said in a strongly worded statement, again protesting US tariffs as a "threatening" approach.

Trade Talks In Jeopardy

The standoff comes just weeks ahead of the sit-down in South Korea, where Trump and Xi were set to seal a larger trade agreement. At the centre of the talks are rival export control regimes: US limits on semiconductors and AI chips vs. Chinese restrictions on key minerals and rare earths. Experts say that if there is no compromise, both sides risk scuttling months of trade talks and inflicting long-term disruptions to global industrial and tech supply chains.

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