"On Thursday, China's commerce ministry said that starting on Dec. 1 a license will be required for foreign companies to export products with more than 0.1% of rare earths from China or that are made with Chinese production technology. That prompted President Donald Trump to announce Friday that he will impose an additional 100% tariff on China and limit U.S. exports of software."
"We should not miss the fundamental point on rare earths: China has crafted a policy that gives it the power to forbid any country on Earth from participating in the modern economy,"
"China has a stranglehold on rare earths, producing more than 90% of the world's processed rare earths and rare earth magnets. They are used across industries, from the tech sector to automakers and defense contractors. They are so critical that U.S. car companies have curbed production due to rare earth shortages as China has leveraged the supply to counter Trump's tariffs."
China will require licenses starting Dec. 1 for foreign companies exporting products containing more than 0.1% rare earths from China or made with Chinese production technology. The U.S. announced a 100% tariff on China and limits on U.S. software exports in response. China produces more than 90% of the world's processed rare earths and rare earth magnets, supplying critical components to technology, automakers, and defense contractors. A former White House advisor warned that China’s industrial capacity gives it the power to bar countries from the modern economy. U.S. carmakers have curtailed production amid rare earth shortages. Recent measures also include semiconductor export restrictions and reciprocal port fees.
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