China defends export control measures on rare earths

China's Ministry of Commerce (MOFCOM) has responded to recent developments concerning its export control measures on rare earths and related items, as well as the US government's plans to impose tariffs and restrictions in retaliation. A spokesperson for MOFCOM outlined China's position on these actions, stressing the country's commitment to safeguarding national security while maintaining global industrial stability.

On October 9, China announced new export control measures on rare earth elements, a move that has drawn international attention, particularly from the United States. The spokesperson emphasized that China's decision was a "legitimate" action, aligned with the country's legal framework, and aimed at refining its export control system. "In the context of turmoil and frequent military conflicts around the world, it is crucial to ensure that medium and heavy rare earths, which have significant military applications, are carefully controlled," the spokesperson said.

The spokesperson underscored that the new measures were not an outright ban, but rather an effort to regulate exports through a licensing system. "Licenses will be granted for eligible applications, and before announcing the measures, China had already notified relevant countries through bilateral export control dialogue mechanisms," the spokesperson added. China expressed its readiness to cooperate with the global community to enhance export control dialogues, aiming to maintain the security and stability of global supply chains.

Further clarification was provided on the implementation of the measures. According to the spokesperson, China had conducted a thorough assessment of the potential impact on global industries and was confident that the effects would be minimal. "We will continue to process applications in a reasonable and moderate manner," the spokesperson said. "China's export controls are not export bans, and all civil-use applications that comply with regulations will be approved."

However, the spokesperson was quick to address the U.S.'s response to the announcement. On October 10, U.S. officials announced they would impose a 100% tariff on Chinese goods and enforce export controls on all critical software. The MOFCOM spokesperson criticized the U.S. actions, calling them an example of "textbook double standards."

"For a long time, the U.S. has been abusing the concept of national security to impose unjust export controls and unilateral measures on China, especially in sectors like semiconductor equipment and chips," the spokesperson said. "This is harming legitimate businesses and disrupting international economic and trade order." The spokesperson pointed out that while China's export control list covers approximately 900 items, the U.S. Commerce Control List includes over 3,000 items, demonstrating the U.S.'s broader and more aggressive approach.

The spokesperson also addressed the ongoing tension over the U.S.'s imposition of port fees on Chinese vessels, set to take effect on October 14. China has announced countermeasures, charging special fees on U.S.-linked vessels in response. The MOFCOM spokesperson denounced the U.S. decision as a violation of World Trade Organization (WTO) rules and the China-U.S. Maritime Transport Agreement, framing it as an act of unilateralism.

"China has repeatedly engaged with the U.S. on this issue, but the U.S. has ignored our concerns and is proceeding with unjust measures," the spokesperson said. "In retaliation, we have been forced to take necessary countermeasures to protect our industries and maintain fair competition in international shipping." AGENCIES