China asks Korea not to export products using rare earths to US defense firms – The Jerusalem Post
2025-04-22T12:44:00Z
The letters said Korean companies could face sanctions if they violate the export restrictions, the report said.
Beijing recently asked South Korean companies not to export products containing China’s rare earth minerals to US defense firms, the Korea Economic Daily reported on Tuesday, citing government and company sources.
The report said China’s commerce ministry delivered the message in letters to Korean companies which make power transformers, batteries, displays, electric vehicles, aerospace, and medical equipment, all of which use critical metals.
At least two transformer manufacturers received official notices from China’s Ministry of Commerce, two sources in the Korean transformer industry told KED.
The letters said Korean companies could face sanctions if they violate the export restrictions, the report said. Chinese President Xi Jinping seen in Hanoi, Vietnam, April 14, 2025 (credit: REUTERS/ATHIT PERAWONGMETHA)
Attempts to thwart exports to US
This move could heavily impact Korea’s economy, which is reliant on exports, the report continued. The companies allegedly fear Beijing could block sales of the metals altogether.
This also signifies the first formal attempt by China to control other countries’ exports to the US. It comes just a few weeks after China’s commerce ministry slapped restrictions on more than a dozen US defense firms after President Donald Trump made good on his threat to impose an additional 50% tariff on Chinese imports.
South Korea’s Industry Ministry was not immediately available for comments outside business hours.
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