China's Rare Earth Export Warning to South Korea

China has reportedly warned South Korean companies against exporting products containing rare earth minerals to U.S. defense firms. The communication, relayed via letters, highlights potential sanctions for non-compliance. This move is seen as part of China's broader strategy responding to U.S. tariffs under President Trump.

Beijing has reportedly directed South Korean firms not to export products containing China's rare earth minerals to U.S. defense companies, according to Korea Economic Daily. The caution was conveyed through letters from China's commerce ministry to South Korean companies involved in manufacturing goods like power transformers and electric vehicles.

The warning suggested that violating these export restrictions could result in sanctions, though South Korea's Industry Ministry has not released comments outside of regular business hours. The development arises amid China's wider response to U.S. tariffs imposed by President Trump.

This new regulation on rare earth exports could significantly impact the availability of essential minerals needed for electronics, weaponry, and other consumer products in Western markets.

(With inputs from agencies.)