China on Thursday accused the United States of stirring unnecessary alarm over its rare earth export controls. The country also rejected Treasury Secretary Scott Bessent’s critical remarks about top Chinese trade negotiator Li Chenggang.
The official People’s Daily released a seven-point rebuttal, defending Beijing’s measures. U.S. officials had suggested that removing the controls could prevent President Trump from imposing 100% tariffs on Chinese goods starting November 8.
“The U.S. interpretation seriously distorts and exaggerates China’s measures, deliberately stirring unnecessary panic,” said He Yongqian, a spokesperson for the Ministry of Commerce.
“Provided the export licence applications are compliant and intended for civilian use, they will be approved.”
China’s new rules raised concerns worldwide about whether manufacturers using even trace amounts of Chinese rare earths would need a licence. He Yongqian clarified that this is not the case.
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Beijing also pointed to the U.S.’s long-standing export controls, which cover over 3,000 items, compared to China’s 900-item list.
“Implementing such export controls is consistent with international practice,” the People’s Daily said.
The dispute intensified after Bessent called Li Chenggang “slightly unhinged” and “disrespectful”, claiming he threatened to “unleash chaos on the global system”. Bessent also said Li had tried to visit Washington uninvited.
He Yongqian responded, “The U.S. side seriously distorts the facts. China is taking the initiative to negotiate and communicate with the United States.”
China blamed the heightened rhetoric on the U.S. Commerce Department’s expansion of its “Entity List”, which targets companies circumventing export restrictions on high-tech goods. China said it notified Washington before announcing its licensing rules.
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Despite the dispute, both countries appear to keep channels for negotiation open. Bessent noted that trust between Trump and Xi has helped prevent escalation and keeps a Korea meeting on track.
He Yongqian urged the U.S. to “cherish the achievements of earlier economic and trade talks and immediately correct its wrongdoings.”
The standoff highlights ongoing tensions over technology, trade, and strategic resources, showing the delicate balance between cooperation and competition between the world’s two largest economies.
Esther Ososanya is an investigative journalist with Pinnacle Daily, reporting across health, business, environment, metro, Fct and crime. Known for her bold, empathetic storytelling, she uncovers hidden truths, challenges broken systems, and gives voice to overlooked Nigerians. Her work drives national conversations and demands accountability one powerful story at a time.
