China urges South Korea to curb rare earth exports to the U.S.
The Chinese authorities have urged South Korean companies to halt the export of products containing Chinese rare earth metals to American defence firms, Reuters reported, citing local media. Authorities in Seoul are verifying the reports, while Beijing has not commented on them.
The matter was revealed on Tuesday by the South Korean newspaper "Korea Economic Daily," citing government and corporate sources. Initially, it was reported that the Chinese Ministry of Commerce had warned South Korean companies about potential sanctions for violating export restrictions, which was later corrected to "the Chinese government."
South Korea's Ministry of Industry confirmed that it is verifying the reports with the Chinese side and local companies. So far, there has been no official confirmation from the Chinese government that South Korean entities have received letters. The Chinese Ministry of Commerce has not responded to requests for comment.
At the beginning of April, China implemented restrictions on the export of rare earth metals, requiring exporters to obtain licences as part of retaliatory actions for "reciprocal tariffs" imposed by U.S. President Donald Trump. Imports from China to the U.S. are subject to a 145% tariff, while China imposes a 125% tariff on imports from the United States.
Additionally, as Reuters notes, authorities in Beijing have warned the governments of other countries against entering into broad economic agreements with the U.S. at China's expense.
Meetings between representatives of South Korean and U.S. authorities on tariffs are scheduled for Thursday in Washington, DC, at 3:00 PM Eastern Time.
17 elements the world "fights" over
Rare earth metals comprise 17 elements essential for the production of various modern technologies, including hybrid cars and weaponry.
South Korea possesses resources of some of them, but the size of the deposits is in question, notes Reuters. China, on the other hand, still maintains over an 80% share in the global refining of rare earth metals.
