Particle.news
Download on the App Store
16 ARTICLES
·
4h ago

China Defends Rare-Earth Curbs as U.S. Sets 100% Tariff Plan, Markets Brace for Fallout

Staggered start dates leave a narrow window for negotiation before the new controls and tariffs take effect.

Image
Image
The sign of new Beijing Stock Exchange is pictured on its building at the Financial Street, in Beijing, China, November 15, 2021. REUTERS/Tingshu Wang
Image

Overview

  • China’s commerce ministry said its rare-earth rules are national security measures rather than bans, laying out a 0.1% content threshold for licensing and pledging approvals for compliant civilian use in a market it dominates by over 90% in processing.
  • President Donald Trump announced an additional 100% tariff on Chinese imports and new export controls on critical software starting Nov. 1, later saying the U.S.–China relationship will be “fine” even as he keeps the plan in place for now.
  • Beijing has not unveiled matching tariffs but warned of “corresponding measures,” matched planned U.S. port fees taking effect Oct. 14, expanded blacklists, and pressed an antitrust probe into Qualcomm.
  • Analysts and industry executives warn licensing could disrupt semiconductor and AI supply chains worldwide, with the Chinese rule modeled on the U.S. foreign-direct-product approach and companies rushing to assess exposure.
  • Global markets turned volatile with tech shares sliding and China/Hong Kong stocks opening lower, even as China reported stronger-than-expected September trade data and investors weighed risks to a possible Trump–Xi meeting at the APEC summit.