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Why did China impose export controls on rare earth minerals?
China announced broad export controls on rare earth minerals between October 10-13, 2025, citing national security and strategic reasons. These minerals are critical for manufacturing electronics, defense equipment, and green technologies. China’s move is seen as a response to US tariffs and trade restrictions, aiming to leverage its dominant position in the global supply chain.
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What does the US plan to do in response to China’s export controls?
The US has threatened to double tariffs on Chinese imports to 100% and impose export controls on critical software. President Trump has also hinted at further tariffs, potentially reaching 145%, to pressure China and protect US industries. These measures aim to counter China’s restrictions but risk escalating the trade war further.
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Could this trade conflict lead to a full-blown trade war?
Yes, there is a real risk that the ongoing tit-for-tat measures could escalate into a full-scale trade war. Both sides are increasing tariffs and restrictions, which could deepen economic decoupling. The situation remains fragile, especially with upcoming summits and negotiations that could either de-escalate or intensify the conflict.
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How might this affect global industries and markets?
Global manufacturers, especially in tech and defense sectors, are feeling the impact of China’s export controls. Countries dependent on rare earth minerals, like Taiwan’s semiconductor industry, may see disruptions. Markets are volatile, with investors wary of prolonged conflict, which could slow down global economic growth and supply chains.
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What are the long-term implications of the US-China trade tensions?
Long-term, these tensions could reshape global trade dynamics, with countries seeking to diversify supply chains away from China. The strategic competition over rare earths and technology could lead to new alliances and increased investment in domestic industries. However, ongoing conflict also risks economic instability and geopolitical instability worldwide.