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Newsweek
24-04-2025
- Business
- Newsweek
China Pressures US Ally to Block Rare Earths to US
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Beijing has reportedly threatened South Korean companies over exports to the United States that contain critical metals from China, according to South Korean media. The report comes as both Washington and Beijing pressure trade partners to pick sides in their tit-for-tat trade war. Why It Matters President Donald Trump imposed sweeping tariffs, or taxes on foreign imports, on scores of nations earlier this month in a bid to reshape the global trade order and bring back factory jobs. The 90-day pause he abruptly announced soon after excluded China, the U.S.'s third-largest trade partner. Beijing's retaliatory measures included reciprocal tariffs and export restrictions on rare earth elements. China dominates the refining of these metals, which are key to technologies ranging from artificial intelligence chips to jet engines and the development of next-generation weapons platforms, including sixth-generation fighter jets. Newsweek reached out to the Chinese embassy in South Korea and the South Korean embassy in the United States via email for comment. China's embassy in the U.S. declined to comment, referring Newsweek to the "competent authorities." What To Know The Korean Economic Daily reported Tuesday that China's government ordered at least two South Korean transformer manufacturers to halt exports of power equipment containing Chinese-sourced heavy rare earth metals to the U.S. military or its contractors. The letters reportedly warned that failure to comply could result in regulatory action, including sanctions. According to a South Korean government official cited by the newspaper, companies in the electric vehicle, display, battery, medical device, and aerospace industries had received similar notices. The report, which Newsweek has not independently verified, would mark the first time China had formally targeted a third country in its trade dispute with the U.S. Containers stacked up on berthed cargo vessels at a terminal in the southeastern port city of Busan on November 24, 2024. Containers stacked up on berthed cargo vessels at a terminal in the southeastern port city of Busan on November 24, 2024. Anthony Wallace/AFP via Getty Images China–South Korea relations are hitting new roadblocks amid Seoul's concerns that Chinese installations in the Yellow Sea may be part of a broader campaign to assert territorial claims. Beijing maintains that the structures are intended solely for aquaculture. If Beijing—Seoul's top trade partner—moves to further leverage its economic clout it could have a serious impact on its neighbor's export-driven economy. Meanwhile, China has been working to rally international support against U.S. President Donald Trump's protectionist trade policies, positioning itself as a responsible and stable alternative to the United States. Last week, Chinese President Xi Jinping embarked on a whirlwind tour of Southeast Asia to bolster China's influence in the region. On Tuesday, Japanese media reported that Prime Minister Fumio Kishida received a letter from Chinese No. 2 Premier Li Qiang, urging him to join Beijing in resisting protectionism. What People Are Saying Han Ah-reum, researcher at the Korea International Trade Association, told The Korean Economic Daily: "As China is expanding its list of US companies that will face Beijing's export bans on top of its retaliatory tariffs in response to Washington's duties, major Korean conglomerates leading the country's exports could take a bigger hit." A spokesperson for China's Commerce Ministry told reporters on April 4: "The relevant items have dual-use properties, and it is a common international practice to impose export controls on them. As a responsible major country, [the move] reflects its consistent position of firmly safeguarding world peace and regional stability." Mark A. Smith, CEO of U.S.-based minerals development company NioCorp Developments, told Access Newswire: "The U.S. has long known that it walks a fine line by relying so heavily on China for rare earths. With this new move, Beijing is jamming its fingers on the pressure points of American deterrence." What Happens Next Following reports that the Trump administration was pressuring trade partners to reduce imports of Chinese goods or raise barriers against them, China warned against what it described as a policy of "apeasement." In the wake of Beijing's stiff pushback, Trump appeared to soften his rhetoric, stating on Tuesday that he has a good relationship with Xi and suggesting tariffs could "come down substantially." China's Foreign Ministry said the country is open to negotiations but on Thursday demanded that the U.S. first remove "all unilateral tariffs imposed on China" as a sign of good faith.
Yahoo
06-02-2025
- Automotive
- Yahoo
KIA EV2 is coming in January 2026 - just not to the US
The KIA EV2's recent spy shots come with both good and bad news: It promises to be a $30,000 EV with an impressive range, but there's no plan for a U.S. release yet. Speaking to Autocar, KIA CEO Ho-Sung Song said making affordable EVs is 'very important, especially for the European market that is in need of smaller [electric] vehicles too.' In other words, the EV2 will be a Europe-only vehicle, with no plans to release it in Korea either, KIA's home EV2 has been spotted on road tests, adorned with an all-black cover to mask its finer design details. From its overall shape, the EV2 seems to be fashioned after the KIA Soul, a small, sporty, but boxy SUV or crossover. Some speculate that it will be about 13 feet in overall length and be the sister vehicle to the Hyundai Inster. Further speculation suggests that the range will be between 270 and 300 miles. KIA plans to start production in late 2025 at its Slovakia factory alongside a second EV. According to a report from The Korean Economic Daily, 'The LFP battery-powered EV2 will be priced between 20,000 euros ($29,000) and 30,000 euros to better compete against Chinese EVs, which have rapidly grown their share of the European EV market from 2.9% in 2020 to 18.2% in the first half of 2024 thanks to a flurry of affordable models.'Simply put, the US auto buyer covets large vehicles, and a small crossover or SUV does not fit that bill. The KIA Niro is one of the brand's worst-selling vehicles, and the EV2 appears to be about the same size as the Niro. By contrast, the Telluride and Sportage, KIA's two largest SUVs, are some of its best-selling vehicles. SUVs account for 76 percent of the brand's total sales in the United States, and its EV sales increased 74 percent year over year. The American auto buyer wants large EV SUVs with a good range, whereas European buyers are more interested in small SUVs or says it's still on track to begin production of the Model 2 (or Model Q) this year. Though it hasn't said much about it, we know it's set to be a sub-$30,000 EV, likely with a decent range. Investors have been hawkishly waiting for the Tesla Model 2 to launch, as it's widely believed to quickly become the company's best-selling vehicle. Nothing like Model 2 or EV2 currently exists in the United States. If left unchallenged, the Model 2 might dominate the segment and the streets. We'd love to see the EV2 come stateside for the same reasons Tesla investors really want the Model 2 to drop: We think a small, affordable EV with good range has massive potential that many overlook. And while the sales numbers may not show it, some buyers may change their outlooks if given the opportunity to purchase a small, affordable EV. Love reading Autoblog? Sign up for our weekly newsletter to get exclusive articles, insider insights, and the latest updates delivered right to your inbox. Click here to sign up now!
