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2025-04-23 Science & Technology

China 'asks' South Korea not to export rare earth products to US defense, warns companies could be sanctioned

Beijing has asked South Korean companies to cease exporting products containing Chinese-originated heavy rare earth metals to U.S. defense firms, warning that Seoul could face sanctions.

China’s Ministry of Commerce sent official notices to at least two South Korean companies recently, the Korea Economic Daily reported on Tuesday, citing sources in the South Korean transformer industry.

The outlet said the letters did not specify what type of penalties South Korean companies could face if the industry continues to export equipment to the U.S. military or its contractors. The equipment in question can include power transformers, displays, batteries, electric vehicles, aerospace and medical equipment.

While the move is intended to retaliate against President Donald Trump’s sweeping tariffs on China, Beijing may start blocking sales of critical metals altogether, disrupting the global economy.

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