US-China rare earth clash 2.0? Fragile truce tested as tit-for-tat moves return

AI Summary

China has imposed export controls on 10 U.S. rare earth companies in retaliation to the U.S. Pentagon's designation of Chinese firms as national champions. This action escalates tensions amid a fragile U.S.-China truce on rare earth trade and technology dominance.

Beijing’s latest restrictions on US rare earth companies, imposed in response to the Pentagon’s designation of leading Chinese firms, are testing the durability of the fragile US-China truce, analysts said. China’s export controls, targeting 10 US entities including national champions MP Materials and USA Rare Earth, mark one of the most significant escalations since Washington and Beijing reached a temporary truce last October in Busan – an understanding that was reaffirmed during the recent...