China has reportedly requested that South Korean companies refrain from exporting products containing Chinese rare earth elements to US defense contractors, according to a report by the Korea Economic Daily published on Tuesday, Reuters reports.
The move is seen as part of Beijing’s broader response to ongoing trade tensions with Washington.
Citing unnamed government and industry sources, the report states that China’s Ministry of Commerce sent letters to various South Korean manufacturers—particularly those involved in producing power transformers, batteries, electric vehicles, displays, aerospace components, and medical devices. These products often incorporate rare earth materials sourced from China.
The communication reportedly included a warning that South Korean companies could face potential sanctions should they fail to comply with the export-related guidance.
China’s reported request follows new export restrictions introduced earlier this month on rare earth elements, a group of critical minerals used in a wide array of high-tech and defense-related applications. These restrictions are widely seen as a retaliatory measure against tariffs imposed by the administration of US President Donald Trump, which have impacted a broad range of Chinese exports.
Rare earth minerals are essential for manufacturing precision-guided weapons, advanced electronics, renewable energy technology, and numerous consumer products. China dominates the global supply chain for these materials, making its export policy a significant point of leverage in international trade disputes.
As of Tuesday, South Korea’s Ministry of Trade, Industry and Energy had not issued a public statement regarding the report and was not immediately available for comment outside normal business hours.
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