Beijing Defends Rare Earth Curbs as U.S. Threatens New Tariffs
China’s commerce ministry on Sunday blasted the U.S. for its “typical double standards” and vowed to retaliate after Washington announced 100% tariffs and new software export controls in response to Beijing’s new restrictions on rare earths.
The spat came just weeks after high-level trade talks between the two sides in Madrid last month. China on Thursday announced export controls on certain rare earth products. Subsequently, the U.S. announced it would impose the new tariffs and control the export of all key software in response. In a statement issued Sunday, a spokesperson for the Ministry of Commerce (MOFCOM) said the U.S. action “seriously damages the atmosphere for bilateral trade talks.”
China defended its rare earth measures as a “legitimate practice” under its laws to safeguard world peace and fulfill international nonproliferation duties, citing the minerals’ important military applications.
MOFCOM said that its rare earth controls are not a ban and that export permits will be granted for compliant, civilian-use applications. It added that it had informed relevant countries before the announcement and assessed the potential impact on supply chains to be “very limited.”
The spokesperson accused the U.S. of long-term abuse of export controls and applying discriminatory, unilateral measures against China, particularly in the semiconductor sector. “U.S. retaliatory statements are typical double standards,” the spokesperson said, noting that the U.S.’ export control list has more than 3,000 items, while China’s has just over 900.
MOFCOM also criticized Washington for escalating restrictions since the U.S.-China economic talks in Madrid in September. It pointed to the U.S. adding more Chinese companies to sanctions lists and moving forward with Section 301 investigations against China’s maritime, logistics, and shipbuilding industries.
“Threatening with high tariffs is not the right way to get along with China,” the spokesperson said, reiterating that China does not want a tariff war, but is not afraid of one. “If the U.S. insists on going its own way, China will resolutely take corresponding measures to safeguard its own legitimate rights and interests.”
Separately, the ministry addressed another point of friction, confirming China will impose a “special port due” on U.S.-related vessels. The move is a countermeasure to the U.S. decision to levy port fees on certain Chinese ships starting Oct. 14, which Beijing calls a “typical unilateralist act” that violates World Trade Organization rules.
MOFCOM said the countermeasure was a “necessary and passive defensive action” after its efforts to resolve the issue through dialogue were met with a “negative” attitude from the U.S.
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