The Trump administration is seeking to cool tensions between the U.S. and China. (Saul Loeb/AFP via Getty Images)
A Virginia-class submarine is outfitted with more than 9,200 pounds of rare-earth elements, while F-35 fighter jets contain more than 900 pounds, according to the Center for Strategic and International Studies.
China plays a critical role in producing these elements. It is responsible for mining roughly 60% of the world’s rare earth minerals and processing nearly 90% as of 2024, according to CSIS.
China unveiled plans Thursday to expand export controls to include five additional rare-earth metals — holmium, erbium, thulium, europium and ytterbium — adding to seven previously restricted in April.
Gracelin Baskaran, the director of the Critical Minerals Security Program at CSIS, said that the export controls will require all foreign companies to secure Chinese approval to export magnets that contain even small amounts of rare earth elements from China, or were made using Chinese technology.
"China’s new rules mark its toughest move yet against the defense sector. Beginning December 1, 2025, firms linked to foreign militaries - including the United States - will be largely denied export licenses," Baskaran said in a Monday email to Fox News Digital.
China said that it imposed the new restrictions due to national security concerns, claiming that the rare-earth elements have "dual-use properties for both civilian and military applications," according to a spokesperson for the Chinese Ministry of Commerce.
China's plans are testing relations between the U.S. and China, following a few months of relative calm between the two. But China's announcement received pushback from Republicans and Democrats serving on the House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party, who are pushing for action to penalize China.
Committee chairman Rep. John Moolenaar, R-Mich., said in a Thursday statement that the new export controls amount to "an economic declaration of war," and that every American would suffer.
President Donald Trump, center, shakes hands with Chinese President Xi Jinping, as they gather for a group photo at the G-20 summit in Osaka, Japan, Friday, June 28, 2019. (AP Photo/Susan Walsh)
In response to China, the Trump administration threatened to impose tariffs on Chinese goods by 100% and warned he might cancel his meeting later in October with Chinese President Xi Jinping.
Even so, Trump attempted to defuse the situation Sunday, and chalked up Beijing’s plans to impose new export controls to a "bad moment."
"Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment," Trump said in a Sunday social media post. "He doesn’t want Depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it!!!"
Meanwhile, the Chinese Embassy in the U.S. said Monday that it "firmly rejects" new U.S. restrictions and sanctions against Beijing, and will "do what is necessary to protect its legitimate rights and interests."
CHINA WEAPONIZED SCIENCE AGAINST THE US. WE'VE FIGURED OUT A KEY ELEMENT THEY MISSED
Chinese President Xi Jinping reviews the honor guard during the welcome ceremony for Bahrain's King Hamad bin Isa Al Khalifa at the Great Hall of the People on May 31, 2024 in Beijing, China. (Tingshu Wang/Pool/Getty Images)
"Threatening high tariffs is not the right way to deal with China," the Chinese Embassy said in a Monday social media post. "The U.S. should correct its approach and act on the common understandings the two presidents reached in their phone calls."
U.S. Trade Representative Jamieson Greer said Sunday that the U.S. was not given a heads up on the increased export controls, and said that China "deferred" a call from the U.S. on the matter after Washington learned about the move from public sources.
However, China and the U.S. upping the ante in their trade war hasn’t totally derailed talks between the two countries. Treasury Secretary Scott Bessent said on Monday that the U.S. and China engaged in "substantial communications" over the weekend, and that Trump and Xi’s meeting in October is still expected.
Fox News’ Morgan Phillips and Alex Schemmel contributed to this report.
Diana Stancy is a politics reporter with Fox News Digital covering the White House.
https://www.foxnews.com/politics/trump-calls-xis-rare-earth-move-bad-moment-why-matters-us-national-security-china-ties