China's Rare Earth Gamble: A Risky Trade Move?

USASun Oct 26 2025
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China is playing a dangerous game with rare earth exports. The country has been tightening controls on these critical minerals, which are essential for many industries. This move has not gone unnoticed or unchallenged. The U. S. and China have been in talks, but China seems unwilling to back down. If no deal is reached, U. S. tariffs on China could jump to 157%. Other countries might also side with the U. S. , which could make things even harder for China. China's actions have upset many. Officials in Europe and Japan have spoken out against the export controls. The G7 has even promised to stand together against them. This is a big deal because it shows that China's tactics are not just hurting the U. S. , but also other important players in the world. The U. S. is not sitting idle. It is looking for other sources of rare earths and turning to allies like Australia. However, it will take time for these new supplies to become available. In the meantime, the U. S. has powerful trade tools it can use against China. President Trump has said he prefers a deal over a fight. He has even softened his tone, saying he is not looking to destroy China. But he has also made it clear that China will have to make concessions. The U. S. wants certain things from China, and the high tariffs are not sustainable for either side. China has also been shifting its trade towards other countries to make up for the drop in exports to the U. S. But Xi Jinping's latest trade move might be backfiring. Companies around the world are starting to think twice about doing business in China.