‘Unnecessary panic’: China rebukes US officials’ comments on rare earths

On Thursday, China pushed back against U.S. officials who described its rare earth export controls as an attack on global supply chains, calling the characterization "unnecessary panic." Beijing emphasized it continues approving compliant applications while streamlining its review process amid growing international scrutiny.

The rare earth minerals - crucial for everything from smartphones to electric vehicles and military technology - have become a flashpoint in U.S.-China tensions this month. Washington had accused China of weaponizing its dominance in the critical mineral market, while Chinese trade officials maintained the measures were standard regulatory adjustments.

In a statement reflecting Beijing's dual-track approach, Chinese authorities addressed both Washington and European partners. While defending its export oversight procedures, China separately urged the Dutch government to stop "interfering" with semiconductor manufacturer Nexperia's operations, signaling the trade tensions extend beyond rare earths.

Industry observers note the timing coincides with increasing global efforts to diversify rare earth supply chains, with the U.S. and allies investing in domestic production and recycling technologies to reduce dependence on Chinese sources.

As diplomatic rhetoric intensifies, manufacturers worldwide are assessing potential impacts on production timelines and material availability. The coming months will test whether these export controls represent temporary friction or signal a new era of restricted critical mineral flows.

"This is a complex balancing act," said Chen Wei, a commodities analyst based in Shanghai. "China controls 80% of global processing capacity, but global markets need stability. Both sides have room to maneuver."