Beijing says it will not back down in the face of threats, urging the US to resolve differences through negotiations.
Published On 12 Oct 2025
China has called United States President Donald Trump’s new tariffs on Chinese goods hypocritical as it defended its curbs on exports of rare earth elements and equipment, while stopping short of imposing additional duties on US imports.
In a lengthy statement on Sunday, China’s Ministry of Commerce said its export controls on rare earths, which Trump had labelled “surprising” and “very hostile”, were introduced in response to a series of US measures since their trade talks held in Madrid, Spain, last month.
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“China’s stance is consistent,” the ministry said in a statement posted online. “We do not want a tariff war but we are not afraid of one.”
Trump on Friday retaliated to the Chinese curbs on rare earth exports by announcing a 100 percent tariff on Chinese exports to the US and new export controls on critical software, effective from November 1.
Beijing cited Washington’s decision to blacklist Chinese firms and impose port fees on China-linked ships as examples of what it called “provocative and damaging” actions, calling Trump’s tariff threat a “typical example of double standards”.
“These actions have severely harmed China’s interests and undermined the atmosphere for bilateral economic and trade talks. China firmly opposes them,” the ministry said.
Unlike earlier rounds of tit-for-tat tariffs, China has not yet announced any countermeasures.
Rare earths have been a major sticking point in recent trade negotiations between the two superpowers. They are critical to manufacturing everything from smartphones and electric vehicles to military hardware and renewable energy technology.
China dominates the global production and processing of these materials. On Thursday, it announced new controls on the export of technologies used for the mining and processing of critical minerals.
The renewed trade tensions between the world’s two largest economies also risk derailing a potential summit between Trump and Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation summit in South Korea later this month. It would have been their first face-to-face encounter since Trump returned to power in January.
The dispute has also rattled global markets, dragging down major tech stocks and worrying companies reliant on China’s dominance in rare earth processing.
Meanwhile, Taiwan’s economy ministry on Sunday said China’s latest export restrictions on rare earth elements are unlikely to impact its semiconductor industry.
“The rare-earth elements covered by the expanded ban differ from those required in Taiwan’s semiconductor processes, so no significant impact on chip manufacturing is expected at this time,” the ministry said.
Taiwan, home to chip giant TSMC, said it sources most of its rare earth products from Europe, the United States and Japan.