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Beijing is tightening the screws: Chinese authorities demand that South Korean companies stop supplying rare earth materials to the US military-industrial complex
In the midst of the escalating trade war between China and the United States, China has asked South Korean companies not to export products containing rare earth elements from China to US defence companies. This was reported by Korea Economic Daily an authoritative publication citing government and industry sources.
According to Reuters, China’s Ministry of Commerce has sent official letters to companies that produce electrical transformers, batteries, displays, electric vehicles, aerospace and medical equipment. All these industries actively use rare earth elements, which are indispensable raw materials in high-tech production.
“The letters clearly state that violations of export rules can lead to sanctions against Korean companies,” KED said in a statement.
Technologies under pressure: rare earth elements are becoming a weapon of geopolitics
This move is China’s response to the customs restrictions imposed by former US President Donald Trump. In early April, Beijing announced new export restrictions on rare earth metals, which are critical for production:
- high-precision weapons,
- solar panels,
- electric vehicles,
- microelectronics and smartphones.
In fact, China is hinting that if the US bans our chips, we will stop your batteries and missiles.
Seoul’s position under pressure
The South Korean Ministry of Industry is currently refraining from commenting, although the situation puts Seoul in a difficult position: the country is simultaneously dependent on Chinese raw materials and American military and technical cooperation.
This dilemma could turn South Korea into an arena of conflict of interest between the two geopolitical giants.
Context: rare earths are the new “oil” of the 21st century
China controls more than 70% of the world’s rare earth metals production. If the restrictions escalate, the West could face a serious supply crisis for all industries, from defence to green energy.
