World

China’s Rare Earth Controls: How Beijing Defends Against U.S. Accusations and Escalating Trade Tensions

China rebuts U.S. demands on rare earth exports, escalating trade tensions with Washington over tariffs and control.

byAndres Castro

October 16, 2025, 9:43 AM

Two stylized chess pieces—one red with the Chinese flag and one striped with the US flag—standing on a reflective golden surface.

A visual metaphor of the strategic rivalry and trade tension between the United States and China. By MDL.

Executive Summary

China has issued a seven-point rebuttal to U.S. demands to ease its rare earth export controls, escalating trade tensions between the two global economic powers.

President Donald Trump and U.S. Trade Representative Jamieson Greer view China’s new critical minerals restrictions as a “global supply-chain power grab” and link them to potential triple-digit tariffs on Chinese goods.

China defends its export controls as consistent with international practices and similar to measures adopted by other major economies, accusing the U.S. of hypocrisy and a “tit-for-tat” response to U.S. actions like the expansion of its “Entity List.”

The Story So Far

The current dispute over rare earth export controls is an escalation within an existing trade war between the US and China, where both nations accuse each other of protectionist measures and escalating rhetoric. The US, led by President Donald Trump, views China’s new restrictions as a “power grab” and has linked their removal to averting increased tariffs, while China defends its controls as consistent with international practices and a “tit-for-tat” response to previous US actions, such as the expansion of its “Entity List” targeting Chinese companies.

Why This Matters

The escalating war of words between the U.S. and China over rare earth export controls, with Beijing defending its new restrictions and President Trump threatening severe tariffs, signals a significant intensification of trade tensions that could disrupt global supply chains reliant on these critical minerals and further strain overall U.S.-China relations ahead of anticipated high-level meetings.

Who Thinks What?

The United States, represented by President Donald Trump and U.S. Trade Representative Jamieson Greer, views China’s new critical minerals restrictions as a “shocking” “global supply-chain power grab” and links their rescission to averting potential triple-digit tariffs.

China maintains that its export controls are consistent with international practices and similar to measures adopted by other major economies, including the U.S., and argues that Washington overstates national security concerns while engaging in discriminatory practices against China.

Chinese state media attributes the heightened rhetoric and “sudden shift in the trade atmosphere” to Washington’s actions, such as expanding its “Entity List” and “breach of promises,” viewing China’s response as a “tit-for-tat.”

Beijing has issued a seven-point rebuttal to U.S. demands that China ease its rare earth export controls, escalating a war of words between the two global economic powers. The Chinese state media’s response comes after U.S. Trade Representative Jamieson Greer accused China of a “global supply-chain power grab” and suggested that rescinding the new controls, set to take effect on November 8, could avert President Donald Trump’s threat of triple-digit tariffs on Chinese goods.

U.S. Accusations and China’s Defense

Washington views China’s new critical minerals restrictions as a “shocking” move, according to President Trump. U.S. Trade Representative Greer linked the rare earth controls to potential tariff increases, suggesting a direct trade-off for de-escalation.

China, however, maintains that it informed Washington prior to announcing the new licensing regime. Beijing argues that its export controls are consistent with international practices and similar measures long adopted by other major economies, including the United States.

Escalating Tensions

The current friction follows a September telephone call between President Trump and Chinese leader Xi Jinping, after which both sides accused each other of stoking tensions. This escalation occurs weeks before an anticipated meeting between the two leaders.

Beijing attributes the heightened rhetoric to the U.S. Commerce Department’s late-September expansion of its “Entity List.” This expansion included companies in China and elsewhere suspected of using subsidiaries to circumvent export restrictions on chipmaking equipment and other high-tech goods.

Comparative Controls and “Tit-for-Tat”

An infographic published by the People’s Daily, the official newspaper of the Communist Party, stated that “The United States has long overstated national security concerns and abused controls, adopting discriminatory practices against China.” It highlighted that Washington’s control list spans over 3,000 items, significantly more than Beijing’s catalogue of 900.

The editorial in the Global Times, a state-owned tabloid, commented on the situation, saying, “Washington should not be surprised by China’s ‘tit-for-tat’.” It suggested that the “sudden shift in the trade atmosphere” was triggered by “Washington’s breach of promises,” describing it as an “all-too familiar pattern.”

Key Takeaways

The ongoing dispute over rare earth export controls highlights deep-seated tensions in U.S.-China trade relations. Both nations accuse each other of protectionist measures and escalating rhetoric, with China defending its controls as consistent with international norms while the U.S. views them as a strategic power grab.