**China's Bold Move: The Rare Earths Tactic That Could Shift the Trade War**

In a provocative announcement, China’s Ministry of Commerce unveiled sweeping curbs on rare earth exports, reigniting tensions in the ongoing US-China trade war. This strategic maneuver highlights Beijing’s monopoly on rare earths, critical for the production of modern technologies from smartphones to military jets. Under the new regulations, foreign companies must obtain Chinese government approval to export items containing even trace amounts of these essential minerals, effectively tightening China’s grip on global supply.

In response, US President Donald Trump threatened to escalate with a 100% tariff on Chinese goods, emphasizing that this is a confrontation between China and the world. US Treasury Secretary Scott Bessent called the situation a dangerous escalation, accusing China of using its market position as a bargaining chip.

Meanwhile, China’s Commerce Ministry defended the new measures, suggesting compliance with regulations would ease the approval process. The renewed frictions have halted a period of relative calm in negotiations and threaten to complicate upcoming discussions between Trump and Chinese President Xi Jinping.

Rare earth elements are indispensable for advanced technology sectors, including military applications, where components like the F-35 fighter jet rely heavily on these materials. Currently, China accounts for a staggering 70% of the global supply utilized in electric vehicle motors, further accentuating its central role in the global supply chain.

Despite China’s tightened restrictions causing concern over potential supply shortages, analysts argue that the economic impact of rare earth exports is marginal on China’s overall economy, constituting less than 0.1% of its GDP. Nevertheless, the strategic significance of these elements positions China favorably in trade discussions, effectively giving it leverage against the US.

Experts believe while Beijing holds the upper hand in the short term, the US still has strategic options, such as relaxing tariffs or imposing additional trade constraints to curb China’s technology ambitions. However, these efforts may have limited success. While US measures can slow China’s advancement, cutting off rare earth supplies could severely disrupt global industries, marking a critical point in the escalating trade tension.