China’s Commerce Ministry is out with a statement and it doesn’t look like they want a quick deal with the USA:
- China’s rare earth export control measures are “legitimate”
- Rare earth export control measures designed to better safeguard world peace and regional stability
- Rare earth export control measures designed to better fulfill international obligations such as non-proliferation
- Rare earth export control measures mainly target the military applications of medium and heavy rare earth metals and the “current turbulent global situation and frequent military conflicts”
- Rare earth export control measures do not constitute a ban on exports; applications that meet the requirements will be granted licenses
- Prior to the announcement of these measures, China had notified relevant countries and regions through bilateral export control dialogue mechanisms
- China is willing to strengthen dialogue and exchanges on export controls with all countries to better safeguard the security and stability of global industrial and supply chains
- Confident latest rare earth export control measures will have “extremely limited impact” on production and supply chains
- U.S. announcement of 100% tariffs on U.S.-bound Chinese imports represent a classic case of “double standards”
- Since the U.S.-China economic and trade talks in Madrid, the U.S. has continuously introduced a series of new restrictions against China
- It added multiple Chinese entities to its export control entity list and specially designated nationals list
- U.S. has arbitrarily expanded the scope of regulated enterprises through “penetration rules,” affecting thousands of Chinese companies
- Disregarding China’s concerns and goodwill, U.S. has insisted on implementing Section 301 measures targeting China’s maritime, logistics, and shipbuilding industries
- U.S. actions have severely harmed China’s interests and undermined the atmosphere for bilateral economic and trade talks, China firmly opposes them
- Threatening to impose high tariffs at every turn is not the right way to engage with China
- China’s position on tariff wars has been consistent: we do not want to fight, but we are not afraid to fight
- China urges the U.S. to promptly correct its erroneous practices
- We must properly manage difference and uphold the stable, healthy, and sustainable development of China-U.S. economic and trade relations
- Should the U.S. persist in its course, China will resolutely take corresponding measures to safeguard its legitimate rights and interests
- China has implemented export control measures with prudence and moderation
- Any rare earth export applications for civilian use that comply with regulations will be approved, relevant enterprises need not worry
- U.S. decision to impose port fees on relevant Chinese vessels meant China “had no choice but to take countermeasures”
- China’s decision to impose a special port fee on U.S.-related vessels are necessary defensive actions
I don’t like the sound of any of this.
This article was written by Adam Button at investinglive.com.
