Trade tensions between China and the US have taken center stage again. China firmly stated it did not restart the ongoing dispute—pointing fingers at former President Donald Trump for escalating matters. The latest friction arose after China unleashed powerful export controls on rare earth minerals, a move that sent shockwaves through global markets.
China Defends Its Position
China’s officials emphasized that they only acted in response to US actions. They claimed Trump’s administration revived the trade conflict by imposing restrictions and making statements that heightened hostilities. Rare earth minerals are crucial for manufacturing electronics, electric vehicles, and defense systems. Any disruption in their supply can impact industries worldwide.
Impact on Global Markets
President Trump called China’s decision “surprising” and accused the country of becoming “very hostile.” Markets responded with volatility as companies dependent on rare earths scrambled to assess the impact. This latest move underscores the fragile relationship between the world’s two largest economies and highlights their influence on global supply chains.
Sources:
CNN: China, US Rare Earth Trade Tensions
