China's BIG move in trade deal with US, Beijing imposes ban on export of...

India.com

16-05-2025

(File)
China-US trade war: In a major move in the China-US trade war, Beijing has reportedly refused to lift the ban on the export of seven rare earth metals to the US, even though the two nations had reached some sort of agreement on a trade deal during recent talks held in Switzerland.
According to a report CNBC Aawaz, China has temporarily lifted export controls on 28 US firms, while 17 other companies have been removed from Beijing's 'Unreliable Entity List'. The agreement is valid for 90 days. China's export ban on rare earth metals intact
However, China has refused to lift the export ban on seven rare earth metals– Samarium, Gadolinium, Terbium, Dysprosium, Lutetium Scandium, and Yttrium– posing a major threat to the supply chain of American firms in the defense and energy and automobile sectors. These rare earth metals are crucial raw materials used in the manufacture of American weapons, batteries, jet engines, missile guidance systems, renewable energy and electric vehicles.
According to an official statement issued by the Chinese Commerce Ministry, all departments have unanimously agreed that greater control over the export of strategic minerals is required in the interest of national security. However, the ministry has not provided any new information on the ban on exports of rare-earth minerals.
Notably, more than 80% of rare earth metals used in the US come from China, which imposed export restrictions on the rival nation last month in response to US President triggering a tariff war by imposing exorbitant tariffs on Chinese imports. China-US trade war
Last month, US President Donald Trump announced reciprocal tariffs on goods coming into America from other nations, including India and China, essentially triggering a tariff war that changed the face of global trade. Trump's tariffs, which came into effect from April 2, 2025, sparked a China-US tariff war, as both sides imposed heavy tariffs on imports coming from each other's countries.
Recently, US and China held high-level trade talks in Switzerland, where an agreement was reached to ease import tariffs. However, latest reports suggest China has chosen to hold on to the export ban on rare earth metals, which could pose a major challenge for supply chains in the US.