Beijing has reportedly asked South Korean companies to refrain from exporting products that contain China’s rare earth minerals to US defense firms, according to the Korea Economic Daily. The report indicates that China’s commerce ministry conveyed this message through letters sent to Korean companies involved in manufacturing power transformers, batteries, displays, electric vehicles, aerospace, and medical equipment, all of which utilize critical metals.
At least two transformer manufacturers have reportedly received official notices from China’s Ministry of Commerce, as stated by sources within the Korean transformer industry. The letters warn that Korean companies may face sanctions if they breach the export restrictions.
This action could significantly affect Korea’s export-dependent economy. It marks China’s first formal effort to control other countries’ exports to the US, occurring shortly after China’s commerce ministry imposed restrictions on over a dozen US defense firms following President Donald Trump’s decision to impose an additional 50% tariff on Chinese imports.
— new from The Jerusalem Post