Faced with the expanding trade tension between China and the United States, Beijing officially commented on controversial fresh rules for uncommon earth exports (RE – uncommon earths). The Ministry of Trade's message of 12 October is not only a method explanation, but besides a strategical repost for the sharp words of Donald Trump, who announced a 100% work on Chinese goods. The analysis of the Chinese position allows a better knowing of Beijing's motivations and the geopolitical context of this decision.
Export control as a safety policy instrument
The Chinese authorities stress that their uncommon earth activities are in line with national government and consequence from a long-term strategy to prevent the usage of these key natural materials for military purposes. uncommon lands – specified as neodymium, dysprosium or terb – are essential for the production of advanced technologies, including rockets, drones, radar systems or electrical drives in combat aircraft.
Beijing has for years stressed that it does not want its dominant position on the uncommon earth marketplace (China supplies more than 60% of planet exports of these natural materials) to be utilized against global peace and stability. In this light, therefore, the fresh export rules are not just a commercial tool, but part of a broader national and global safety policy.
No "surprise" – dialog before announcement
Donald Trump called China's actions "unexpected", suggesting that Beijing acted unilaterally and unpredictablely. Meanwhile, the Chinese Ministry of Commerce clearly denies this narrative, stressing that prior to the publication of the fresh export rules, the applicable countries were informed of them – including possibly the United States.
Such consultations are standard practice in global trade, especially for products of strategical importance. The fact that Washington found Beijing's actions amazing may be due to a deficiency of sensitivity to Chinese signals alternatively than to actual unpredictability.
Control
One of the most common errors in the analysis of Chinese uncommon earth policy is the recognition of "export control" with "export ban". The Chinese authorities powerfully stress that they will proceed to actively consider export applications if they service legitimate civilian purposes.
This means that companies from all over the planet – including American ones – can proceed to acquisition Chinese uncommon land, provided that certain administrative procedures are met and that the natural materials are not put into military use. This approach allows China to keep control of the supply chain without compromising the global economy.
Background: Escalation of tensions after talks in Madrid
It is worth recalling that inactive in June 2024, representatives of China and the US met in Madrid to discuss possible relief of trade tensions. The gathering was seen as a chance for thawing. Meanwhile, as Beijing emphasizes, Washington not only did not retreat from the erstwhile restrictions, but introduced additional restrictions, including access to advanced semiconductors or AI technology.
In this context, the decision to strengthen control over uncommon earth exports is not an isolated step, but part of a broader strategy for retaliation and protection of national interests. The Chinese authorities make it clear: if the US continues its "technological cut-off" policy, Beijing will besides usage its strategical assets.
Port charges – direct retaliation for decisions of the USR
The last point of the Chinese message concerns a totally different, albeit related, area: charging US vessels in Chinese ports. This decision is not based on an impulse, but is simply a direct consequence to the decision of the U.S. Trade typical (USR) of April, which, according to Beijing, violated the principles of fair trade.
The Chinese authorities point out that they have tried to resolve this issue repeatedly through dialogue, but Washington has consistently refused concessions. In this situation, Beijing considered that the only effective consequence was the application of proportionate retaliation measures, which is in line with the WTO rules.
Well...
The Chinese message of October 12 is not only a method explanation, but besides a clear political signal: Beijing does not intend to yield US pressure, but at the same time avoids escalation to full trade conflict. China's strategy is based on sustainability – on the 1 hand, maintaining control of strategical natural materials, on the another hand – ensuring continuity of global supply chains.
In the coming weeks, the planet will be observing whether Washington will respond constructively to this message or will proceed its confrontational rhetoric. 1 thing is certain: uncommon lands have not only become industrial natural material, but besides an crucial pawn in the 21st century geopolitical chessboard.
Leszek B. Glass
Email: [email protected]
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