China accuses U.S. of deliberately causing panic over rare earth controls, says it is open to talks

Core Viewpoint - The U.S. and China are engaged in a dispute over China's recent export controls on rare earth minerals, with both sides accusing each other of creating panic and misunderstanding, while expressing a willingness to engage in trade talks to resolve the issue [2][3][5]. Group 1: China's Position - China claims its export restrictions on rare earths are necessary for national security, aimed at preventing misuse in military applications [6]. - The Ministry of Commerce criticized the U.S. for distorting China's measures and accused it of projecting its own behavior onto others [8]. - Rare earths are essential for U.S. military technology, including weapons platforms like the F-35 and Tomahawk missiles, as well as civilian applications such as electric vehicles and robotics [8]. Group 2: U.S. Response - The U.S. Trade Representative accused China of attempting to control global technology supply chains, with the potential for 100% tariffs on Chinese goods if the situation escalates [4]. - The Trump administration is working to establish a domestic supply chain for rare earths to reduce dependence on China, including a deal with MP Materials, the largest U.S. rare earth miner [9]. - Treasury Secretary Scott Bessent indicated that the administration may take equity stakes in other companies to ensure self-sufficiency and combat market manipulation by China [10][11].