Beijing, China – China hits back at the United States, accusing Washington of spreading panic and misrepresenting Beijing’s trade policies.
A spokesperson from China’s Ministry of Commerce said U.S. officials have exaggerated the country’s new export control measures, creating what she called “unnecessary misunderstanding and panic.”
“The U.S.’ interpretation seriously distorts and exaggerates China’s rare earth export control measures, deliberately stirring up unnecessary misunderstanding and panic,” He Yongqian explained.
At the center of the issue are China’s new export restrictions on rare earth materials, key components used in advanced technologies and military equipment among others.
Under the new rule, exporting rare earths will now be required to apply for government licenses.
China currently processes over 90% of the world’s rare earth supply, giving it major control over global production lines.
This policy alarmed Washington officials.
US Trade Representative described China’s move as a “global supply-chain power grab,” urging Beijing to reverse the decision.
“China’s announcement [on export controls] is nothing more than a global supply chain power grab…This move is not proportional retaliation. It is an exercise in economic coercion on every country in the world,” Greer said.
Meanwhile, US President Donald Trump accused China’s export curbs a hostile act, accusing Beijing of holding the world hostage by limiting access to these critical materials.
Trump also announced a 100% tariff on Chinese-made products, a measure that could take effect as early as next month.
Beijing, however, defended its decision, saying the policy is consistent with international practices and that exports for civilian use will still be allowed.
“Provided the export licence applications are compliant and intended for civilian use, they will be approved,” He Yongqian clarified.
On the other hand, Trump and Chinese President Xi Jinping are expected to meet in the coming weeks in South Korea to try to discuss the ongoing dispute.