Updated October 10, 2025 at 8:10 AM AKDT
BEIJING — President Trump is threatening new tariffs a day after China introduced new restrictions on exports of rare earths and related technology on Thursday.
Analysts say the export controls were an attempt to boost Beijing's leverage in trade talks with the United States, but Trump now says he may call off a planned meeting with Chinese leader Xi Jinping later this month.
"I have not spoken to President Xi because there was no reason to do so," Trump wrote on Truth Social on Friday. "This was a real surprise, not only to me, but to all the Leaders of the Free World. I was to meet President Xi in two weeks, at APEC, in South Korea, but now there seems to be no reason to do so."
The meeting planned on the sidelines of an Asia-Pacific summit would be the first face-to-face meeting between Xi and a U.S. president in nearly a year.
The main target of the Ministry of Commerce's so-called "unreliable entities list" appears to be U.S. defense technology companies, which rely on rare earths from China. Halifax International Security Forum, an annual security summit held in Halifax, Canada, is also on the list.
China processes around 90% of the world's rare earths, which are critical inputs in everything from smartphones to advanced fighter jets. Beijing has used its dominance in rare earths to apply pressure to the United States as trade friction intensified this year following Trump's "liberation day" tariffs.
According to a string of announcements from the ministry on Thursday, the new rules expand the list of controlled rare earths that require licenses for export, restrict the types of rare earth recycling and processing equipment that can be sent abroad, and clamp down on the use of Chinese rare earths in the overseas chip sector and in military applications.
Dan Wang, China director at the Eurasia Group, said the move signals "a deliberate effort to strengthen China's bargaining position" ahead of the potential meeting between Trump and Xi.
"Rare-earth tech access will likely feature in negotiations over tariffs, semiconductors, and broader tech trade. By demonstrating China can calibrate controls, Beijing is showing a new level of confidence and sophistication," she said.
"The policy could become an example for China's broader approach to strategic commodities — like cobalt, graphite etc. — turning export control into a diplomatic lever. China's dominance in resource and related tech will become a new choke point for global business."
China argues the export controls are for national security
A ministry spokesperson said the tightened export controls on rare earths were designed to enhance China's national security.
"Recently, some foreign organizations and individuals have directly or indirectly transferred or provided rare earth-controlled items of Chinese origin, either in their original form or after processing, to entities and individuals in sensitive sectors such as the military," the spokesperson said in a statement.
"These activities have caused significant harm or posed potential threats to China's national security and interests, adversely affected international peace and stability, and undermined global non-proliferation efforts."
It's not the first time China has tightened exports of rare earths
In April, after Trump announced soaring tariffs on China and other countries, Beijing tightened exports of rare earths, leading to supply shortages — and a scramble to negotiate. Trump had a call with Xi in June that he said yielded progress on rare earths.
The two leaders spoke again in September to lay the groundwork for their meeting in South Korea. Trump said he accepted an invitation to visit China early next year, and that Xi agreed to visit the United States at an "appropriate time".
In a separate announcement, the Ministry of Commerce added 14 foreign companies to its "unreliable entities" list, many of which are American aerospace defense firms. A ministry spokesperson was quoted as saying the move was a response to the firms' cooperation with Taiwan, the self-governed island that Beijing considers part of China.
"These actions have seriously undermined China's national sovereignty, security, and development interests," the spokesperson said in a statement.
In response to the export controls on Friday, Trump warned, "One of the Policies that we are calculating at this moment is a massive increase of Tariffs on Chinese products coming into the United States of America. There are many other countermeasures that are, likewise, under serious consideration."
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