China breaks silence on minerals chokehold threatening Trump and US allies

Chinese officials responded to complaints on Thursday over export controls on rare earth elements—a group of metals crucial to a range of technologies, from electric motors to missile guidance systems.

Newsweek reached out to the White House via email for comment.

Why It Matters

China dominates the rare earth industry, accounting for 70 percent of mining and 90 percent of chemical processing. The imbalance is an Achilles’ heel for Washington, which sees dependence on its top military rival as a national security threat.

Beijing exploited this vulnerability in April, curbing exports of seven rare earths after President Donald Trump raised tariffs. The restrictions, along with investment bans on 17 American companies, were loosened last month after the United States and China reached a 90-day ceasefire in Geneva, Switzerland.

Negotiations have since stalled. Trump has accused China of violating the agreement, without specifying how. Beijing believes Washington breached the consensus by tightening export controls on AI chips produced by Chinese tech giant Huawei “anywhere in the world” and by planning to revoke Chinese student visas.

What To Know

U.S. officials have said the country is still withholding rare earth shipments and magnets. European car manufacturers have complained of disruptions, and Japanese automaker Suzuki has reportedly halted production due to a parts shortage.

Asked about the restrictions during the Chinese Ministry of Commerce’s regular press conference, spokesperson He Yadong said it was “international practice” to maintain export controls on rare earths, citing their dual-use civilian and military applications.

“The Chinese government will review applications for export licenses related to dual-use items in accordance with laws and regulations, and will approve those applications that meet the requirements to facilitate compliant trade,” he said.

During the Foreign Ministry’s press conference, Japan’s NHK asked about Suzuki being forced to suspend production of some cars due to a lack of parts.

Ministry spokesperson Lin Jian stressed that China’s export control measures are non-discriminatory and “not targeted at any particular country.”

In a Thursday post on Truth Social, Trump said that he held a phone call with Chinese President Xi Jinping—their first confirmed conversation since January 17, shortly before Trump’s inauguration.

Trump suggested the “complexity of rare earths” featured in the discussion, without elaborating.

What People Are Saying

President Donald Trump, Thursday on Truth Social: “I just concluded a very good phone call with President Xi, of China, discussing some of the intricacies of our recently made, and agreed to, trade deal.

“The call lasted approximately one and a half hours, and resulted in a very positive conclusion for both Countries. There should no longer be any questions respecting the complexity of rare earth products.

What Happens Next

Trump said U.S. and Chinese negotiators would be “meeting shortly” at an undetermined location.

Rare earth products would be key to Trump’s goal of revitalizing U.S. manufacturing.

Japan’s chief tariff negotiator, Ryosei Akazawa, departed Thursday for talks in Washington. As both a top vehicle exporter to the U.S. and a key security ally, Japan will propose a “cooperation package” aimed at boosting the supply of the seven rare earths restricted by China, Nikkei reported.