What's happened
China has expanded restrictions on rare-earth metals, now controlling 12 of 17 key elements, as part of a broader trade and geopolitical strategy. The US has responded with port fees on Chinese vessels, escalating maritime tensions. Australia offers to supply critical minerals, signaling shifts in global supply chains. Today's date: Tue, 21 Oct 2025 23:04:28 +0100.
What's behind the headline?
China's recent expansion of export restrictions on 12 of the 17 rare-earth elements signals a strategic move to strengthen its bargaining position in ongoing trade negotiations with the US. By controlling these critical materials, China aims to influence global supply chains for technologies vital to both military and civilian industries. The US response—imposing port fees on Chinese vessels—further intensifies maritime tensions, risking disruption of global freight flows. This tit-for-tat escalation underscores a broader shift towards economic decoupling, with Australia stepping in as a potential alternative supplier of critical minerals. The move reflects China's willingness to decouple from US-led supply chains and diversify exports through initiatives like Belt and Road. Meanwhile, the US seeks to reduce dependence on Chinese processing, evident in Australia's plans to develop its own critical mineral reserves and processing capabilities. The upcoming Trump-Xi meeting later this month will likely determine whether these tensions escalate into a full-blown trade war or find a pathway to de-escalation. The current trajectory suggests a prolonged period of strategic competition, with supply chain resilience becoming a central concern for global industries.
What the papers say
Al Jazeera reports that China has expanded its export controls on rare-earth metals, restricting 12 of 17 key elements, and has begun collecting port fees on US-linked vessels, escalating maritime trade tensions. The US has responded with port fees on Chinese ships, aiming to weaken China's maritime industry, with some shipping companies attempting to divert cargoes. Meanwhile, Australia has positioned itself as a potential alternative supplier of critical minerals, with plans to develop reserves and processing capabilities, and has engaged in discussions with the US about critical mineral supply. The Japan Times highlights that both sides are seeking to reassure markets after initial threats of a trade war, emphasizing cooperation and the possibility of negotiations. The Independent notes that despite the escalation, both nations are trying to avoid full conflict, with China warning it will pursue confrontation if necessary, but also leaving the door open for dialogue. Overall, the coverage underscores a complex, multi-layered geopolitical struggle centered on resource control, maritime dominance, and trade diplomacy.
How we got here
China, which mines 70% of rare earths and processes 90%, has used export controls as leverage amid ongoing trade disputes with the US. The US has imposed port fees on Chinese ships to weaken China's maritime dominance, prompting reciprocal measures. Meanwhile, Australia is positioning itself as an alternative supplier of critical minerals, especially as US-China tensions escalate.
Go deeper
Common question
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Is the US and China Trade War Cooling Down?
Recent developments suggest a potential easing in US-China trade tensions, sparking questions about whether a full de-escalation is on the horizon. While both sides have taken steps to reduce tariffs and clarify trade policies, underlying disputes still exist. In this page, we explore the latest signs of cooperation, what they mean for global markets, and whether a resolution is near. Keep reading to find out if the trade war is truly ending or just taking a temporary pause.
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How Are Countries Navigating Global Trade Tensions and Conflicts?
In today's interconnected world, international trade conflicts and geopolitical tensions are constantly evolving. From US-China trade disputes to European support for Ukraine, nations are balancing economic interests with security concerns. Curious about the latest developments and what they mean for everyday life? Read on to find out how countries are managing these complex issues and what signs of cooperation or escalation are emerging.
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Why are US and China escalating maritime trade tensions now?
Recent developments in US-China trade relations have led to increased maritime tensions, with both countries imposing new restrictions and fees on each other's vessels. China has expanded export controls on rare-earth metals crucial for tech manufacturing, while the US has introduced port fees aimed at weakening China's maritime industry. Australia is positioning itself as an alternative supplier of critical minerals amid these tensions. But what exactly is driving this escalation, and what could it mean for global trade? Below, we explore the key questions surrounding this complex situation.
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How are global supply chains shifting amid US-China trade tensions?
The ongoing trade tensions between the US and China are reshaping global supply chains, especially in critical minerals and maritime trade. Countries like Australia are stepping up as alternative suppliers, while tensions over rare-earth metals and port fees are causing disruptions. Curious about how these shifts impact industries and what the future holds? Keep reading for answers to your top questions.
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What’s next for US-China relations after recent trade escalations?
Recent trade tensions between the US and China have escalated, with both nations imposing new restrictions and tariffs. As tensions rise, many are wondering what the future holds for their relationship. Will diplomatic talks help de-escalate the situation? How might these conflicts impact global markets and supply chains? Below, we explore the key questions and potential outcomes of this ongoing dispute.
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Why is China restricting rare-earth exports now?
China has recently expanded its restrictions on rare-earth metals, controlling 12 of the 17 key elements used in everything from electronics to defense. This move comes amid rising tensions with the US and shifts in global supply chains. Many are asking: why now? What does this mean for the world? And how are other countries responding? Below, we explore the reasons behind China's export controls, their impact, and what might happen next.
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