05.04.2025 14:03
China, which has announced a series of sanctions in response to Trump's additional tariff decisions, has restricted the export of certain rare earth elements against the United States' increase in "reciprocal tariffs." Not stopping there, the Beijing administration has also implemented some sanctions against U.S. companies.
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China has imposed restrictions on the export of certain rare earth elements, which it supplies a large portion of the global market, in response to the 34% increase in customs duties on imported products from the country under the "reciprocal tariffs" imposed by the USA. In a statement from the Chinese Ministry of Commerce, it was announced that seven categories of medium and heavy rare metals, including samarium, gadolinium, terbium, dysprosium, lutetium, scandium, yttrium, and their alloys, will be added to the export control list starting from April 4.
SUSPICIOUS SHIPMENTS WILL BE SEIZED
In this context, Chinese suppliers will only be able to export the aforementioned rare earth elements with government permission. Furthermore, Chinese customs officials may seize shipments suspected of containing restricted elements. The elements in question, which China supplies a large portion of the global market, are used in a wide range of products, from weapon systems to high-performance engines, nuclear reactors to electronic and optical equipment, spacecraft to medical imaging machines, and from batteries and fuel cells to semiconductors and superconductors.
CHINA IS RICH IN RARE ELEMENTS
Producing about 90% of the 17 groups of rare earth elements, China has once again shown its intention to turn its global dominance in this field into an economic leverage through export restrictions. The Beijing administration had previously banned the export of rare earth elements such as gallium, germanium, and antimony, which are widely used in defense and weapon systems, in response to the US's chip restrictions, and also imposed restrictions on the export of graphite and its derivatives, which are widely used in the production of batteries and fuel cells, as well as in the defense and aerospace sectors.
SANCTIONS AGAINST AMERICAN COMPANIES HAVE BEGUN
In response to the 34% increase in customs duties on imported products from the USA under the "reciprocal tariffs," China announced sanctions that include export bans, restrictions, and investigations targeting US companies. According to a statement from the Chinese Ministry of Commerce, 27 US companies have been added to the export control or ban lists. While the export of products with dual military and civilian use from 16 of these companies has been banned, 11 companies have been placed on the "unreliable entity" list, which is subject to export bans.
The Ministry reported that the 16 US companies were added to the export control list to protect China's national security and interests and to comply with international obligations to prevent the proliferation of weapons. The exports of these companies, which operate in defense, aviation, drone manufacturing, intelligence, and logistics, will be subject to scrutiny when exporting to China. It was noted that 11 companies, including drone manufacturers like Skydio and BRINC Drones, were placed on the "unreliable entity" list due to their technology cooperation with Taiwan, which is in a sovereignty dispute with China.
ANTIDUMPING INVESTIGATION LAUNCHED AGAINST US GROUP
The Ministry also announced that it has launched an antidumping investigation into certain medical tomography tube products imported from the USA and India, as well as a competition investigation into the general import of these products. Meanwhile, the State Administration for Market Regulation of China has initiated an investigation against the US multinational chemical company Dupont for suspected violations of antitrust laws concerning its Chinese subsidiary. The General Administration of Customs of China has also revoked the export permits of six US companies for poultry products and broomcorn to China.
CHINA IS CONTINUOUSLY RETALIATING
China's move came after US President Donald Trump announced that he would impose an additional 34% customs tariff on China under the "reciprocal tariffs." The Washington administration had stated that an additional 34% customs tariff would be imposed on China, consisting of a 10% base tariff plus a 24% "reciprocal tariff." With the new tariff increases, the minimum customs tariff applied by the USA on imported products from China had risen to 54%. The Beijing administration also announced that it would impose an additional tariff at the same rate in response to the 34% tariff increase imposed by the USA under the "reciprocal tariffs," and also announced sanctions against US companies.
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