The official newspaper of the Chinese Communist Party released a seven-point infographic rebuttal following suggestions from U.S. negotiators that Beijing could avoid President Donald Trump’s threatened 100% tariffs on Chinese goods by rolling back the controls set to take effect on November 8. While markets have been reassured that the two economic giants have avoided retaliatory tariffs seen earlier this year, tensions over rare earths risk overshadowing planned high-level talks between Trump and Chinese President Xi Jinping in South Korea later this month.
“The U.S.’ interpretation seriously distorts and exaggerates China’s (rare earths export control) measures, deliberately stirring up unnecessary misunderstanding and panic,” said He Yongqian, a spokesperson for China’s Ministry of Commerce, at a press conference. She added that export license applications would be approved for civilian use, clarifying that the new controls do not require manufacturers worldwide to apply for licenses for any product containing trace amounts of Chinese rare earths.
The expanded export controls have drawn criticism from U.S. officials. U.S. Trade Representative Jamieson Greer called the measures “a global supply-chain power grab,” while Bessent suggested extending the current 90-day tariff truce, set to expire around November 9, as a potential solution.
Observers noted that U.S.-China trade relations appeared relatively stable following a September 19 call between Trump and Xi, which followed a Madrid summit marked by a breakthrough deal on TikTok. However, the rare earths dispute and accompanying rhetoric have once again brought tensions to the fore.
Beijing attributes the escalation to the U.S. Commerce Department’s surprise expansion of its “Entity List” in late September, targeting Chinese companies and subsidiaries accused of bypassing export restrictions on high-tech goods. China maintains it had notified Washington prior to announcing its licensing regime and emphasizes that its measures are consistent with international norms. “The United States has long overstated national security concerns and abused controls, adopting discriminatory practices against China,” the People’s Daily noted, highlighting that Washington maintains control lists covering more than 3,000 items compared to China’s 900.
The dispute took a personal turn when Bessent described China’s chief trade negotiator, Li Chenggang, as “slightly unhinged” and “disrespectful,” claiming Li had threatened to “unleash chaos on the global system” over port fee increases and had self-invited to Washington in August. He Yongqian dismissed these remarks as distortions, insisting that China continues to take the initiative to communicate and negotiate with the U.S.
Bessent acknowledged that the personal tensions had not yet escalated into broader trade conflict, crediting the trust between Trump and Xi with preserving the pathway for continued dialogue. “It is hoped the U.S. will cherish the achievements of the earlier economic and trade talks and immediately correct its wrongdoings,” He said.
As both sides navigate this delicate moment, the rare earths issue highlights the fragility of global supply chains and the sensitivities surrounding trade between the world’s two largest economies.