China asks Korea not to export products using rare earths to US defense firms – reports

Reuters | April 22, 2025 | 7:02 am Critical Minerals Markets Asia China USA Rare Earth

U.S. finds its Chinese rare earth dependency hard to break: Andy Home

That reliance on China for minerals with critical uses across a wide spectrum of civilian and military applications is becoming ever more problematic as Sino-U.S. relations deteriorate. Stock image.

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 the key materials.

The letters said Korean companies could face sanctions if they violate the export restrictions, the report said.

South Korea’s Industry Ministry was not immediately available for comments outside business hours.

Early this month, China placed export restrictions on rare earth elements as part of its sweeping response to US President Donald Trump’s tariffs, squeezing supply to the West of minerals used to make weapons, electronics and a range of consumer goods.

(By Hyunjoo Jin; Editing by Kim Coghill)