China holds a near-monopoly in the processing of the elements crucial for making everything from smartphones to fighter jets.
Last week, China's Ministry of Commerce published a document that went by the name of "announcement No. 62 of 2025". But this wasn't just any bureaucratic missive. It has rocked the fragile tariffs truce with the US. The announcement detailed sweeping new curbs on its rare earth exports, in a move that tightens Beijing's grip on the global supply of the critical minerals - and reminded Donald Trump just how much leverage China holds in the trade war. China has a near-monopoly in the processing of rare earths - crucial for the production of everything from smartphones to fighter jets. Under the new rules, foreign companies now need the Chinese government's approval to export products that contain even a tiny amount of rare earths and must declare their intended use. In response, US President Donald Trump threatened to impose an additional 100% tariff on Chinese goods and put export controls on key software. "This is China versus the world. They have pointed a bazooka at the supply chains and the industrial base of the entire free world, and we're not going to have it," said US Treasury Secretary Scott Bessent. On Thursday, China said the US had "deliberately provoked unnecessary misunderstanding and panic" over the rare earths restrictions. "Provided the export licence applications are compliant and intended for civilian use, they will be approved," a commerce ministry spokesperson added. This week, the world's two biggest economies also imposed new port fees on each other's ships.
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As if the US didn't point a bazooka at supply chains and the industrial base of the entire world with Trump's tariffs. I can't see why the US would be angry, after all, Trump said trade wars are easy to win. I wonder if he's tired of winning, yet.













