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China has found Trump's pain point - rare earths

China's export restrictions reduce rare earth shipments by over 30%, leveraging its near-monopoly to strengthen its position in ongoing trade negotiations with the US.

  • China's Ministry of Commerce announced sweeping new curbs on rare-earth exports, requiring foreign firms to seek approval and declare intended use, tightening Beijing's control over critical minerals.
  • Analysts point to China's long-term push to dominate processing, as Beijing controls about 60% of global rare-earth production and nearly 90% of refining capacity.
  • More than 90% of US rare-earths come from imports, over 80% from China, which supplies around 70% of metals for electric vehicle motors and an F-35 fighter jet needs more than 400kg.
  • The move immediately reignited trade tensions, ending the May truce, as President Donald Trump threatened an additional 100% tariff and export controls while both sides added port fees this week.
  • Later this month, President Xi Jinping and President Donald Trump will meet at the APEC Summit in Gyeongju, South Korea, as China redirects exports to Africa, Southeast Asia, the EU, and Latin America.
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BBC News broke the news in United Kingdom on Thursday, October 16, 2025.
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