Tensions rise as China presses South Korea on rare earth trade
The Chinese authorities have urged South Korean companies to halt the export of products containing Chinese rare earth metals to American defense firms, Reuters reported, citing local media. The authorities in Seoul are verifying these reports, while Beijing has not commented.
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, but this 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 of receiving letters from the Chinese government by South Korean entities. 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 licenses 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 the expense of China.
Meetings between representatives of South Korean and U.S. authorities on tariffs are scheduled for Thursday in Washington, DC.
17 elements the world "fights" over
Rare earth metals consist of 17 elements essential for the production of many modern technologies: from hybrid cars to weaponry.
South Korea possesses resources of some of these elements, but the size of the deposits is in question, Reuters notes. China, on the other hand, still maintains over an 80% share in the global refining of rare earth metals.
