By Obinna Uballa
China has accused the United States of exaggerating and misrepresenting its new rare earth export licensing rules, insisting that the measures are consistent with international practice and that Washington was notified ahead of their announcement.
Beijing’s strong reaction came on Thursday after US officials, including Treasury Secretary Scott Bessent, accused China of weaponising critical minerals and called for the curbs to be rolled back to avert fresh tariffs threatened by President Donald Trump.
“The US interpretation seriously distorts and exaggerates China’s measures, deliberately stirring up unnecessary misunderstanding and panic,” commerce ministry spokesperson He Yongqian told a news conference in Beijing.
“Provided the export licence applications are compliant and intended for civilian use, they will be approved,” she said, rejecting speculation that China would target global manufacturers using even trace amounts of Chinese rare earths.
The new licensing regime, due to take effect on November 8, expands oversight on exports of rare earth minerals and magnets, a move analysts say could reshape global supply chains for critical materials used in electronics, electric vehicles, and defence technologies, Reuters reported.
In Washington, US Trade Representative Jamieson Greer described the measures as “a global supply-chain power grab,” while Bessent hinted that the 90-day tariff truce – expiring around November 9 – might be extended if Beijing reversed course.
Bessent told a CNBC forum that China’s restrictions “show why the US must be self-sufficient in critical materials or depend only on trusted allies.”
Beijing, however, blamed Washington for escalating tensions, pointing to the US Commerce Department’s recent expansion of its Entity List to include Chinese firms accused of circumventing export restrictions on chipmaking equipment.
China’s official People’s Daily published a seven-point rebuttal, accusing the US of hypocrisy and double standards. One infographic noted that Washington maintains an export control list of over 3,000 items, more than three times China’s 900-item catalogue, and asserted that “implementing such export controls is consistent with international practice.”
Beijing stressed that its rules mirror similar frameworks adopted by other advanced economies and have existed in the US since the 1950s.
Trade tensions turn personal
The dispute took a personal turn after Bessent described China’s chief trade negotiator Li Chenggang as “slightly unhinged” and “disrespectful,” claiming he threatened to “unleash chaos on the global system” if the US moved ahead with new port fees.
Responding, He Yongqian dismissed the remarks as “seriously distorting the facts,” saying China had “taken the initiative to negotiate and communicate” with Washington.
“It is hoped the US will cherish the achievements of the earlier economic and trade talks and immediately correct its wrongdoings,” she added.
Despite the harsh exchanges, both governments are still preparing for a planned meeting between President Donald Trump and Chinese leader Xi Jinping in South Korea later this month, a key engagement viewed as crucial to maintaining global market stability.
