(qlmbusinessnews.com . Thu 16th Oct, 2025) London, UK —
Trade War Fears: China's New Export Controls Spark Global Outrage, US Threatens Retaliatory Tariffs
Senior American officials have accused China of reneging on a previously agreed trade armistice, intensifying the strain between these two global powerhouses.
In a highly publicised event, US Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent vehemently criticised China’s intentions to restrict exports of rare earth elements, labelling these actions as “economic coercion” and an attempt to hijack global supply chains.
Bessent issued a stark warning, stating, “Should China wish to be recognised as an unreliable partner internationally, then it compels the global community to disengage.”
However, they hinted at a willingness to return to the negotiation table, casting doubt on whether China would enforce the export limitations it had declared the preceding week.
“The magnitude and breadth are simply staggering, rendering it unenforceable,” commented Greer on Wednesday regarding China’s stricter export rules.
China, which refines approximately 90% of the world’s rare earth metals and magnets – essential to high-tech manufacturing for products ranging from vehicles to mobile phones – holds a significant advantage in trade negotiations with the US, which depends heavily on these materials.
Under Beijing's new regulations, foreign enterprises must obtain Chinese governmental approval to export products containing trace amounts of rare earths, specifying their end use.
China also imposed similar export restrictions on lithium batteries and specific types of graphite, pivotal components in the global technological supply chain.
In response, Trump threatened last week to levy an additional 100% tariff on Chinese imports starting the following month. He announced via social media that the US would also subject crucial software to export controls, with Greer confirming that these measures are currently being drafted.
Moreover, in an escalating show of discord, both nations commenced imposing new port fees on each other's vessels on Tuesday.
This surge in trade tensions comes before an anticipated meeting between Trump and Chinese President Xi Jinping, stirring concerns about a potential collapse of a delicate peace that has been maintained since spring and fears of a resurgence of a full-blown trade conflict.
Following an agreement in May to eliminate tariffs of up to 145% that had almost halted trade, Chinese imports to the US have been subjected to an additional 30% fee since the start of the year, while American exports to China now face a new 10% tariff.
Greer remarked on the May deal, highlighting that “we have reduced tariffs since then – but now the Chinese have widened their export controls.”
Bessent expressed worries communicated by American automotive manufacturers regarding a potential disruption in supply, condemning Beijing's actions as “unacceptable” and “highly provocative.”
“This is a standoff between China and the globe,” he declared. “We, along with our allies, refuse to be dictated or dominated. We will not allow a cadre of bureaucrats in Beijing to dictate the global supply chain.”
He acknowledged the “substantial actions” that the US could undertake but stated a preference to avoid them.
“I remain hopeful that China is willing to engage in dialogue and I am optimistic that this situation can be defused,” he concluded.
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