Trade Regulation

On October 9, China expanded export controls to include 12 out of 17 rare-earth metals and certain refining equipment. This measure will come into effect on December 1 and is in response to the United States’ restrictions on Chinese entities. The US measures have targeted various industries, including maritime, logistics, and shipbuilding.

The new regulations require foreign companies to obtain approval from Beijing to export products containing Chinese rare earths and to disclose their intended use. China cites national security interests as the reason for these heightened restrictions. The country maintains a significant position in the global rare earths market, which is crucial for manufacturing technologies such as electric cars, smartphones, semiconductors, and weapons.

US Response

On October 10, US President Donald Trump announced a 100 percent tariff on Chinese goods, which will take effect on November 1. The decision was made in light of China’s recent actions regarding rare-earth metal exports. Trump also indicated potential export controls on critical software.

The ongoing trade tensions between the two nations have raised concerns about a renewed trade war, especially as the US prepares for a possible meeting between Trump and Chinese President Xi Jinping later this month in South Korea.

China’s Position

China has criticized the US response, labeling it as a “double standard.” The Chinese Ministry of Commerce has stated that the US has overstretched the concept of national security and adopted discriminatory practices against China. In response to the US measures, China has threatened additional countermeasures if the US proceeds with its tariff plan.

Recent US Trade Measures Against China

2025: Tariff Increases

Following his second term inauguration, Trump imposed a 10 percent tariff on all imports from China, citing a trade deficit. This was followed by countermeasures from China. Subsequent months saw further tariff escalations between the two nations, with tariffs eventually reduced to 30 percent in May 2025.

December 2024: Microchip Controls

In December 2024, former US President Joe Biden tightened controls on microchip sales, adding 140 companies to a restricted list and banning advanced chip-making equipment exports to certain countries.

April 2024: TikTok Ban

Biden signed a bill requiring TikTok’s sale to a non-Chinese entity, citing national security concerns. ByteDance, TikTok’s parent company, subsequently sued the US government over this decision.

October 2023: Semiconductor Restrictions

The US restricted exports of advanced computer chips to China in October 2023, aiming to limit China’s technological advancements in military applications.

October 2022: Semiconductor Export Controls

In October 2022, restrictions were placed on China’s access to US semiconductors, affecting industries supporting the semiconductor supply chain.

May 2020: Huawei Restrictions

In May 2020, the US restricted Huawei’s use of American technology and software for semiconductor design and manufacturing.

March 2018: Initial Tariffs

In March 2018, Trump imposed 25 percent tariffs on Chinese goods, marking the beginning of the US-China trade tensions.

Conclusion

The trade tensions between the US and China remain complex, with both countries implementing measures that impact global trade dynamics. The upcoming meeting between Trump and Xi Jinping may offer an opportunity for negotiation, but the outcome remains uncertain.