South Korea’s leading financial newspaper reported on Tuesday that China’s Ministry of Commerce had sent a letter to South Korean companies threatening them from using Chinese rare earth minerals to export to the US military, according to an anonymous industry source.
Korea has dramatically increased its profile as a manufacturer of defense technology, and is likewise one of the most prolific manufacturers in the world of communications and computer technology. These industries rely heavily on rare earth minerals, a group of 17 elements common in the production of batteries, computers, automobiles and other high-tech. China controls the rare global industry both in mineral production and processing, and recently used its leverage to reduce exports in response to President Donald Trump’s efforts to limit his dependence on the Communist Chinese economy.
This month, the Chinese government announced seven rare earth mineral export restrictions this month in response to the ongoing tariff war with the United States. Report in Korea’s economy every day On Tuesday, Beijing showed that it was not limiting its response to the US, but was trying to use the control of key industries to force third-party countries to promote China’s interests. It also follows the publication of a statement by the Chinese Commerce Department on Monday, which threatened to punish countries that negotiate business deals with the Trump White House.
Korea’s economy every day “Sources for the South Korean Trans Industry” and one of the unnamed sources of the Chaos South Korean government say that China’s Commerce Department has reached out directly to unknown companies purchasing China’s rare earth minerals and warns them not to sell products containing those minerals to the US military.
“According to sources from the South Korean transformer industry on Tuesday, at least two transformer manufacturers have received official notifications from China’s Ministry of Commerce,” the newspaper elaborated.
“Korean government officials added that China’s Ministry of Commerce has sent the same letter to other local businesses in the batteries, displays, electric vehicles, aerospace and medical equipment sectors,” he said.
The letter reportedly did not identify any specific consequences of not paying attention to warnings except for some form of sanctions.
The report coincides with China’s Commerce Department’s contents released Monday, warning the country that a US “reconciliation” “cannot bring peace and compromise cannot be respected.”
“To seek the so-called exemption by undermining the interests of others for temporary selfish benefits is to search for the tiger skin, which ultimately fails at both ends, only harming others and yourself,” the statement read in part.
“China hopes that all political parties will resolve economic and trade differences with the United States through equal consultation,” he continued. “China believes that all parties should side with fairness and justice, historical correctness, and defend international economic and trade rules and multilateral trading systems on the issue of “mutual tariffs.” ”
South Korea is a prolific buyer of China’s rare earth minerals. According to the Korean International Trade Association, almost 50% of South Korea’s rare earth minerals It has origin China in 2024 saw a significant decline from previous years, but still a scary percentage of the total. Around the world, China is responsible for over 90% of rare earth treatment. This is a troubling part of production, which separates rare earth minerals from mixed materials.
On April 2nd, President Trump announced an increase in tariffs in almost every country operating with the United States. Shortly afterwards, the president announced that tariffs would be suspended for 90 days as all countries except China were open to renegotiating trade agreements to improve America’s status. – In all countries except China.
The Chinese government responded to the announcement by restricting the exports of seven rare earth minerals. Beijing subsequently redirected pressure from Washington on other affected countries. Dictator XI Jinping was on a tour of Southeast Asian countries last week. Most notable Vietnam and Cambodia initially faced nearly 50% tariffs from the White House. Therefore, XI spoke to local leaders on the dangers of tariffs and trade policies aimed at protecting domestic industries.
The reported threats to South Korean business leaders appear to be right-handed to affect the arrival of South Korean delegations in Washington to renegotiate trade ties with the US. Minister of Finance Choi Sang-Mok departure On Tuesday, he meets Treasury Secretary Scott Bescent from Seoul on a mission to build a new framework for US-Korea trade.
“I’ll come back after opening the door for a resilient debate on the alliance between South Korea and the US,” he told reporters before boarding the plane. Yonghap of the Korean News Agency said that South Korea was one of the first countries to receive American leaders and audiences to renegotiate trade relations.
President Donald Trump is not expected to attend the negotiations personally, but made a surprising appearance during discussions between American and Japanese officials. shocking Prime Minister Isba Sigarh.
“I’ve never seen it before [U.S.] The president appears immediately from the beginning [of negotiations like that]. That was far beyond my expectations,” Isba said Monday. “President Trump will prioritize negotiations with Japan. Decisions will be made through the president’s leadership.”
