china warns south korea: rare earth sanctions loom
China threatens South Korea with sanctions for exporting products with Chinese minerals to the USA. China possesses crucial resources and technology that can significantly affect the American economy.
China has threatened South Korea with sanctions if it continues to export products containing Chinese rare earth minerals to American defence companies, reported "Korea Economic Daily," citing government and corporate sources.
The Chinese Ministry of Commerce communicated this warning in letters to Korean companies that use Chinese rare earth metals to produce transformers, batteries, electronic displays, electric vehicles, aviation, and medical equipment.
China is leveraging export restrictions in response to American tariffs on Chinese goods, which are 145% on imports from China, writes FOX Business.
Stocks rebound
On Tuesday, the financial markets in the USA experienced gains following previous declines. The Dow Jones rose by over 600 points, while the S&P 500 and Nasdaq increased by 1.7% and 2%, respectively.
These gains came after Monday's losses caused by concerns about progress in trade talks and President Trump's criticism of Fed Chairman Jerome Powell. On Truth Social, Trump is pushing for a rate cut, arguing that inflation is low and the costs of energy and food are decreasing.
The International Monetary Fund has lowered economic growth forecasts for the USA and other countries due to high tariffs and trade uncertainty.
Economic growth in the USA is expected to be 1.8%, which is 0.9 percentage points lower than the January forecast. Global growth is projected to be 2.8%, a decline of 0.5 percentage points. These changes result from the tariffs announced by Trump and the trade responses of the USA's partners.
