China News: Escalating US Trade War and Rare Earth Restrictions Dominate China Latest News

 

Beijing, October 16, 2025 – In the fast-paced world of China news today, tensions between the world's two largest economies have reignited, thrusting the US-China trade relationship back into the spotlight. As China News Today live updates flood global feeds, Beijing's bold expansion of export controls on rare earth elements has sparked a fierce backlash from Washington, with President Donald Trump threatening 100% tariffs on Chinese imports. This latest flare-up, just weeks ahead of a pivotal Trump-Xi summit in South Korea, underscores the fragility of recent diplomatic thaws and raises alarms about supply chain disruptions worldwide.

The Spark: China's Rare Earth Gambit

At the heart of this brewing storm is China's near-monopoly on rare earths – 17 critical minerals essential for everything from smartphone batteries to fighter jets and electric vehicles. On October 9, China's Ministry of Commerce unveiled sweeping new restrictions under "Announcement Number 61 of 2025," adding five elements – holmium, erbium, thulium, europium, and ytterbium – to its export controls. For the first time, these rules extend beyond raw materials to include any devices incorporating them, such as semiconductors and defense tech, with heightened scrutiny for foreign producers reliant on Chinese tech.

Beijing insists the measures are "legitimate" and WTO-compliant, aimed at safeguarding national security and environmental standards, not imposing bans. "China's export controls are not export bans," a commerce ministry spokesperson emphasized, noting that compliant civil-use applications will receive approvals. Yet, experts view this as a strategic escalation, leveraging China's 90% dominance in processed rare earths to counter US tech restrictions.

The timing couldn't be more charged. These curbs come amid stalled talks from Madrid, where the US accused Nvidia of antitrust violations during a fragile truce. With the Trump-Xi meeting looming, analysts like Tim Zhang of Edge Research call it a "leverage play" to bolster Beijing's hand.

Trump's Fiery Response: Tariffs and Tough Talk

Washington wasted no time firing back. On October 11, Trump announced plans for 100% tariffs on all Chinese exports starting November 1, labeling Beijing's moves a "clear repudiation" of prior agreements. "Make no mistake, this is China versus the world," Treasury Secretary Scott Bessent declared at a press conference, vowing that the US and allies "will neither be commanded nor controlled" by Beijing's bureaucrats. US Trade Representative Katherine Tai echoed this, blasting the restrictions as a threat to global supply chains.

The rhetoric has only intensified. Trump accused China of hypocrisy and "trying to hurt the world economy," prompting Beijing to retort that the US is the real aggressor, wielding "double standards" through its own export bans on advanced chips. China's Commerce Ministry warned it would "fight to the end" in any trade war, refusing to yield to "intimidation." Foreign Minister Wang Yi, in Rome this week, urged de-escalation but hinted at "decisive measures" if the US persists.

Adding fuel to the fire, the US has imposed port fees on China-linked ships – a move stemming from 2024 investigations into Beijing's state-subsidized shipbuilding dominance. China retaliated with its own fees on October 10, calling them "countermeasures" against "discriminatory" US practices. This tit-for-tat echoes the 2018-2020 trade war, but with higher stakes: average US tariffs on Chinese goods now hover at 58%, per the Peterson Institute.

Market Mayhem and Global Ripples

The fallout has been swift and brutal. Wall Street plunged on October 11, with the Dow dropping 879 points – its worst day since April – as Big Tech stocks tanked amid fears of disrupted rare earth supplies. The S&P 500 shed over 2%, wiping out trillions in value. European and Asian markets followed suit, with semiconductor firms like Nvidia and Qualcomm – already under Chinese antitrust probes – hit hardest.

Beyond stocks, the restrictions threaten industries worldwide. Rare earth shortages could hike costs for EVs, wind turbines, and defense gear, stalling the green transition. US officials, including National Security Adviser Mike Greer, warned of further export controls on China if it buys more Russian oil, potentially dragging Europe into the fray. Meanwhile, allies like Canada are caught in the crossfire: Beijing's ambassador offered tariff relief on Canadian canola and oil in exchange for dropped EV duties, highlighting diversification pressures.

On X, the platform formerly known as Twitter, the debate rages. Posts decry China's "economic warfare" while others praise Beijing's resolve, with hashtags like #ChinaTradeWar trending globally. One viral thread warned: "If NATO mobilizes puppets in Asia over Taiwan, we will crush them all," amplifying fears of spillover into geopolitics.

Broader Context: China's Domestic Resilience

Amid the external storm, China latest news also spotlights internal strengths buffering the blows. The IMF projects 4.8% GDP growth for 2025 – outpacing the US's 2.0% and most of Europe – driven by a booming "new economy." Beijing's tech push shines through: China unveiled a homegrown 90GHz oscilloscope on October 15, breaking foreign monopolies in electronic measurement. Flying cars are set for mass production in 2026, with XPENG AEROHT already testing in Dubai. Agriculture thrives too, with AI drones and robots fueling a "grain miracle."

Yet challenges loom. A 2025-26 steel capacity ban aims to curb overproduction, but electricity demand is slowing, and the "silver economy" for aging citizens eyes $4 trillion by 2035. Military flexes include the "Peace and Friendship-2025" exercise with Malaysia in the South China Sea and the Fujian carrier's catapult tests.

Looking Ahead: Summit or Standoff?

As China News Today live streams capture every twist, the October-end Trump-Xi summit hangs in the balance. Trump softened slightly on October 13, posting on Truth Social: "The USA wants to help China, not hurt it!!!" But with JD Vance urging Beijing to "choose reason" and China vowing no retreat, optimism is thin.

This saga isn't just bilateral brinkmanship; it's a test of global economic resilience. For businesses, diversification from China is urgent. For policymakers, dialogue over decoupling. In the words of one X analyst: "China flexed. Trump hit back. So much for the thaw." As November 1 approaches, the world watches – and waits.

Stay tuned for more on China news as developments unfold.