Trump calls Xi’s rare earths decision ‘bad timing’ – why it matters for US national security and relations with China

The Trump administration is seeking to ease tensions between the United States and China, after Beijing unveiled plans to impose export controls on rare earth magnets and after the United States threatened to impose stricter tariffs on Chinese products in retaliation.

Rare earth elements are used in products such as electric cars, household appliances, lithium batteries and camera lenses – and are essential to national security because magnets are key components in many weapons systems.

Export controls directly affect the defense supply chain since magnets are used in F-35 fighter jets, Virginia and Columbia class submarines, Tomahawk missiles, and radar systems, among other platforms.

Trump threatens ‘massive’ China tariffs, sees ‘no reason’ to meet XI

The Trump administration is seeking to ease tensions between the United States and China. (Saul Loeb/AFP via Getty Images)

A Virginia-class submarine is equipped with more than 9,200 pounds of rare earth elements, while F-35 fighter jets contain more than 900 pounds, according to the Center for Strategic and International Studies.

China plays a vital role in the production of these elements. It is responsible for extracting about 60% of the planet’s rare earth minerals and processing almost 90% by 2024, according to CSIS.

China on Thursday unveiled plans to expand export controls to include five additional rare earth metals – holmium, erbium, thulium, europium and ytterbium – adding to the seven previously restricted in April.

Gracelin Baskaran, director of the Critical Minerals Security Program at CSIS, said the export controls will require all foreign companies to obtain Chinese approval to export magnets containing even small amounts of rare earth elements from China, or that were made using Chinese technology.

“China’s new rules are the toughest action ever taken against the defense sector. Starting December 1, 2025, companies linked to foreign militaries – including the United States – will be largely denied export licenses,” Baskaran said in an email to Fox News Digital on Monday.

China said it imposed the new restrictions for national security reasons, saying rare earth elements have “dual-use properties for both civil and military applications,” according to a spokesperson for China’s Ministry of Commerce.

China’s plans are testing relations between the United States and China, after a few months of relative calm between the two. But China’s announcement was pushed back by Republicans and Democrats on the House Select Committee on U.S.-Chinese Communist Party Strategic Competition, who are pushing for action to penalize China.

The committee’s chairman, Republican Rep. John Moolenaar of Michigan, said in a statement Thursday that the new export controls amount to “a declaration of economic war” and that all Americans will suffer.

John Moolenaar, a Michigan Republican, is now chairman of the House Select Committee on China. (Al Drago/Bloomberg via Getty Images)

“China has fired a loaded gun at the U.S. economy, seeking to remove critical minerals used in manufacturing the semiconductors that power the U.S. military, the economy, and the devices we use every day, including cars, phones, computers, and televisions,” Moolenaar said in a statement.

Moolenaar sent a letter to Trump in September urging him to take action against China’s dominance in rare earth magnets and to consider limiting Chinese airlines’ access to U.S. and allied airports until Beijing lifts restrictions.

The committee’s senior member, Rep. Raja Krishnamoorthi, D-Illinois, also said the United States needs to find alternatives so the country is not so dependent on China for its magnets.

“The United States and its allies must redouble efforts to diversify sources of supply, strengthen partnerships, and invest in domestic transformation to reduce our dependence on the Chinese Communist Party for critical minerals,” Krishnamoorthi said in a statement Friday.

TRUMP AND BESSENT CAN USE TIKTOK NEGOTIATIONS TO COUNTER CHINA’S DOMINANCE ON RARE LANDS

President Donald Trump, center, shakes hands with Chinese President Xi Jinping as they gather for a group photo at the G20 summit in Osaka, Japan, Friday, June 28, 2019. (AP Photo/Susan Walsh)

In response to China, the Trump administration threatened to impose 100% tariffs on Chinese goods and warned it might cancel its meeting later in October with Chinese President Xi Jinping.

Despite this, Trump attempted to defuse the situation on Sunday and called Beijing’s plan to impose new export controls “bad timing.”

“Don’t worry about China, everything will be fine! The highly respected President Xi just had a bad time,” Trump said in a social media post on Sunday. “He doesn’t want depression for his country, and neither do I. The United States wants to help China, not hurt it!!!”

Meanwhile, China’s embassy in the United States said Monday that it “firmly rejects” new US restrictions and sanctions against Beijing and will “do what is necessary to protect its legitimate rights and interests.”

CHINA WEAPONIZED SCIENCE AGAINST THE UNITED STATES. WE UNDERSTOOD A KEY ELEMENT THEY’RE MISSING

Chinese President Xi Jinping reviews the guard of honor during the welcoming ceremony of King Hamad bin Isa Al Khalifa of Bahrain at the Great Hall of the People May 31, 2024 in Beijing, China. (Tingshu Wang/Pool/Getty Images)

“Threatening high tariffs is not the right way to deal with China,” the Chinese embassy said in a social media post on Monday. “The United States should correct its approach and act on the basis of the common understandings that the two presidents reached during their phone calls.”

U.S. Trade Representative Jamieson Greer said Sunday that the United States had not been informed of the increase in export controls, and said China had “postponed” a U.S. call on the matter after Washington learned of the move through public sources.

However, the fact that China and the United States have upped the ante in their trade war has not completely derailed negotiations between the two countries. Treasury Secretary Scott Bessent said Monday that the United States and China had “substantial communications” over the weekend and that Trump’s meeting with Xi in October was still expected.

Morgan Phillips and Alex Schemmel of Fox News contributed to this report.