Hong Kong — President Donald Trump has accused China of “becoming very hostile” after it implemented sweeping export controls on rare earth minerals, a move he described as surprising. Beijing, however, contends its actions were a direct response to Washington’s expanded curbs on Chinese companies.
The friction between the world’s two largest economies escalated rapidly over the weekend. Trump threatened to restore tariffs on Chinese goods to triple-digit levels, prompting Beijing to vow “corresponding measures.” This exchange has rattled global markets, raised concerns about production shocks across industries, and revived fears of a tit-for-tat trade war reminiscent of the previous spring’s embargo-level levies.
The renewed tensions also jeopardize months of progress in trade negotiations and cast doubt on a planned meeting between Chinese leader Xi Jinping and Trump in South Korea at the end of the month. After Trump suggested he might cancel the summit, Treasury Secretary Scott Bessent told Fox News on Monday he still expected it to proceed. On Tuesday, China’s commerce ministry reiterated its openness to talks but warned that the US cannot seek dialogue while simultaneously threatening new sanctions.
According to Chinese experts and analysts, the current standoff could have been avoided if the Trump administration had not significantly expanded its export control list in late September, adding several thousand more Chinese entities. Jin Canrong, a government adviser and professor at Renmin University in Beijing, characterized Beijing’s move as a response to a series of “petty manoeuvres” by Washington. “After taking a bite at China, the US now pretends to be innocent and even tries to play the victim,” he wrote on the social media platform Weibo.
The escalation followed a period of apparent détente. Wu Xinbo, an adviser to the Chinese foreign ministry and dean at Fudan University, noted that relations had shown signs of improving after trade talks in Madrid and a subsequent phone call between Xi and Trump. During that call, Xi warned against “imposing unilateral trade restrictions to undermine the progress achieved.” Just 10 days later, Washington expanded its export restrictions to include subsidiaries of already sanctioned firms.
“From China’s perspective, this is extremely malicious,” Wu said, calling it another instance of Trump “acting in bad faith.”
Paul Triolo, a China and tech expert at consulting firm Albright Stonebridge, said the situation is reminiscent of the downward spiral in relations seen last May. “We’re sort of at the edge of an abyss again,” Triolo said. “But now the stakes are even higher because both sides now understand the consequences.”
China holds a near-monopoly on the global supply, processing, and refinement of rare earths, a group of 17 minerals critical for producing electronics, automobiles, and semiconductors. The new rules not only increase the number of elements subject to export controls but also target production technologies and overseas use. For instance, the regulations apply to foreign firms that supply rare earths produced in China or processed with Chinese technology to other countries.
These restrictions have sent shockwaves through global tech and industrial supply chains. The new rules, which target minerals used in advanced semiconductors, could also stall the global boom in artificial intelligence. Acknowledging global anxiety, China’s commerce ministry stated the measures are not export bans and that it will approve licenses for applications that meet its requirements.
Experts note that Beijing’s measures mirror restrictions Washington has imposed on semiconductors, which limit the export of chips and chipmaking equipment made with US technology, even in third countries. While Beijing has long criticized this “long-arm jurisdiction,” its latest move signals a willingness to adopt similar tactics.
“From Trump’s first term to Biden’s and now to his second term, the US has piled up tariffs, tech restrictions, and sanctions against China,” said Wu. “Beijing has kept a record of every one of these moves — and now it’s time to settle the score.”
Regarding the upcoming summit, Wu stated the “ball is in Trump’s court.” “It’s up to the US to take concrete actions to improve ties. It shouldn’t be the other way around — that China sacrifices its interests or tolerates US pressure just for the sake of meeting,” he said.
Trump’s tone appeared to soften in a social media post on Sunday, stating the US would like to “help China, not hurt it.”
Wang Yiwei, another scholar at Renmin University, said Beijing is now “fully prepared” to deal with Trump, understanding his tactics and America’s weaknesses. With China’s firm grip on rare earths, he argued, US dependence will continue in the short term. “The message to Americans is: be realistic — it’s better to cooperate with China.”
