China Responds to U.S. Trade War With Rare Earth Controls
Xinjiang Rare Metals National Mine Park, China, X/ @IntEngineering
February 4, 2025 Hour: 7:45 am
These metals are essential for various industries, ranging from defense and electronics to clean energy.
On Tuesday, China announced export controls on tungsten, tellurium, bismuth, indium, and molybdenum—metals that are essential for various industries, ranging from defense and electronics to clean energy. The measure is part of Beijing’s retaliation against the additional 10% tariffs imposed by U.S. President Donald Trump on Chinese products.
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Tungsten is used to manufacture electronic components and aerospace applications due to its high density and melting point, while tellurium is employed in the production of solar panels, metal alloys, and thermoelectric devices, according to the U.S. Geological Survey.
Meanwhile, bismuth is used in low-melting-point alloys, pharmaceuticals, and cosmetics, and indium is essential for manufacturing touchscreens, solar panels, and semiconductors. Lastly, molybdenum is crucial for enhancing the strength of steel alloys and in electronic components.
The controls are intended to delay the export processes of these materials to the United States, as companies seeking to obtain them will now be required to apply for licenses. The U.S. does not produce these metals, and industries such as electronics, renewable energy, and automotive manufacturing could face increased production costs if they fail to secure the necessary licenses.
China justified the measure by stating that, as a “major global producer and exporter” of these materials, it is committed to “complying with non-proliferation and other international obligations.”
“The measure complies with international laws and is based on the need to safeguard national security and interests,” the Ministry of Commerce stated, adding that the controls will help “ensure the security and stability of global industrial and supply chains.”
This latest measure follows previous restrictions on minerals involved in chip manufacturing that Beijing imposed in 2024 in response to U.S. technological restrictions during Joe Biden’s presidency.
On Tuesday, China also announced that it would impose tariffs of 10% to 15% on certain U.S. products starting February 10, following the additional 10% levies that Trump placed on Chinese goods. Additionally, Beijing launched an antitrust investigation against the U.S. tech giant Google.
teleSUR/ JF Source: Xinhua