Tensions over critical minerals escalated further on Thursday after Chinese state media issued a forceful rebuttal to U.S. criticism of Beijing’s rare earth export controls, amplifying a diplomatic standoff that shows no sign of easing.
In a seven-point statement, Chinese outlets rejected Washington’s demands to scrap the new measures, which are scheduled to take effect on November 8. The exchange comes as both countries brace for a high-profile meeting between their leaders against a backdrop of mutual recriminations.
U.S. Trade Representative Jamieson Greer on Wednesday denounced Beijing’s rare earth export restrictions as “a global supply-chain power grab,” and hinted that China could avoid President Donald Trump’s threat to reinstate triple-digit tariffs on Chinese goods by abandoning the controls.
Beijing, however, argues that Washington was notified in advance and insists the new licensing system is fully in line with international norms, pointing to similar frameworks in other major economies.
The clash has been simmering since a phone conversation in September between Trump and Xi Jinping, after which both sides accused each other of escalating tensions ahead of their expected summit.
Chinese officials say the U.S. sparked this latest flare-up by expanding the Entity List in late September to target companies in China and abroad that allegedly circumvent U.S. chipmaking equipment export rules.
U.S. officials, on the other hand, view Beijing’s critical minerals policy as the trigger, with Trump calling it “shocking.”
“The United States has long overstated national security concerns and abused controls, adopting discriminatory practices against China,” read one of seven infographics released by People’s Daily, the official newspaper of the Communist Party. It also noted that the U.S. has a control list covering more than 3,000 products, compared with Beijing’s roughly 900.
“Implementing such export controls is consistent with international practice,” another infographic reiterated, underscoring Beijing’s defense of its decision.
Washington has enforced similar export controls since the 1950s, using them in recent years to prevent foreign semiconductor firms from supplying Chinese customers with technology of U.S. origin.
“Washington should not be surprised by China’s ’tit-for-tat’,” declared an editorial in Global Times, a state-run tabloid known for its nationalistic tone and frequent signaling of Beijing’s strategic stance.
“The sudden shift in the trade atmosphere caught many by surprise, yet that’s not surprising,” the editorial continued.
“The direct trigger for this round of tension was Washington’s breach of promises – an all-too familiar pattern.”
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