A document titled “announcement No. 62 of 2025” was released by China’s Ministry of Commerce last week. However, this was no ordinary bureaucratic letter. The tenuous tariff truce with the US has been upended by it.
In a move that strengthens Beijing’s grasp on the world’s supply of the vital minerals, the announcement revealed extensive new restrictions on its rare earth shipments. It also served as a reminder to Donald Trump of China’s significant influence in the trade battle. In the processing of rare earth elements, which are essential for the creation of everything from cellphones to fighter jets, China maintains a monopoly-like grip.
Under the new regulations, foreign businesses must now declare their intended use and obtain permission from the Chinese government before exporting goods that include even a small amount of rare earth elements.
It’s China against the rest of the world. US Treasury Secretary Scott Bessent stated, “They have aimed a bazooka at the supply chains and the industrial foundation of the entire free world, and we will not tolerate it. China claimed on Thursday that the United States had “deliberately provoked unnecessary misunderstanding and panic” over the limitations on rare earth elements.
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