Twelve rare-earth elements constitute the most recent flashpoint in an evolving U.S.–China trade spat, following a punishing proposal by Beijing to restrict the export of materials crucial for the production of smartphones, electric vehicles, wind turbines, missile-guidance systems, and more.
As APF Canada’s Karen Hui notes, “under the new rule, foreign companies, even if no Chinese parties are involved, must secure Beijing’s approval to export goods containing 0.1 per cent or more by value of certain Chinese-sourced rare earths, or products made using China’s rare earth-related technologies.”
U.S. Trade Representative Jamieson Greer said these restrictions would represent a "global supply-chain power grab.” In response, U.S. President Donald Trump has threatened to impose an additional 100 per cent tariff on Chinese goods starting November 1.
G7 finance ministers met in Washington, D.C., this week, where they discussed “China's export curbs and a possible response,” according to Reuters.
There are 17 recognized rare-earth elements; Beijing has now tentatively restricted the export of 12 of them. From 2020–23, 70 per cent of American imports of rare-earth compounds and metals came from China.
Despite this recent rift, Bessent told reporters that bilateral talks would continue this week, with a leader-level meeting on track for late October.
Beijing seems to be looking for leverage in advance of that meeting: this week, Chinese authorities detained 30 Christian pastors and staff across the country. U.S. Secretary of State Marco Rubio demanded the immediate release of the detainees.
