US-China Trade Tensions Escalate Ahead of APEC Summit as Rare Earth Dispute Deepens
By Bob Mason | Published October 16, 2025, 03:03 GMT
Trade tensions grow between the United States and China. Both sides act in ways that keep the conflict high. The clash centers on rare earth minerals and taxes. These moves put global supply chains and markets at risk.
Rare Earth Clash Sparks New Dispute
China now sets tighter limits on its rare earth exports. It needs these minerals for high-tech work and defense. Beijing first said it would stop exports entirely. Soon, it clarified that valid requests would go ahead.
This change makes President Trump add a 100% tariff on many Chinese goods. Soon after, both leaders set new port fees on shipments from October 14. The fight now widens.
US officials see China’s move as a test of strength. Treasury Secretary Scott Bessent said America and its friends must build their own support. They aim for plans that can match China’s tight hold.
Washington and Beijing Brace for High-Stakes APEC Meeting
The APEC Summit is just around the corner. Hopes for a quick fix have grown dim. In a planned meeting, President Trump and President Xi show few signs of softening positions. Each side stands firm.
US Trade Representative Jamieson Greer said, "We can work through it if China does not keep a veto over our tech chains." Yet Greer also noted that China faces its own trade slowdowns and rising job losses.
China’s Economic Strength Fuels Belief
China shows strong trade signs despite the row. Exports jumped 8.3% in September and imports grew by 7.4%. UBS raised its forecast for China’s export rise in 2025 from 1% to 4.5%. New trade routes and global demand beyond America help this rise.
Policy support and hope in local spending lift spirits in China. The ruling party meets soon and plans to boost family buying power and high-tech work. This move shows a shift toward a home-driven plan.
Market Reaction and Global Implications
Asian markets gained small points amid the tension. The CSI 300, Shanghai Composite, and Hang Seng index all moved up slightly. Traders see hints of steps to help jobs and home sectors.
In the United States, worries pile up over slow growth and a risk of high prices. The central bank may drop interest rates in October and again in December to spark growth.
Across Europe, fears rise that limits on Chinese goods may push prices up if supplies fall short.
What Lies Ahead?
With the APEC Summit near, the US-China trade bond meets a tough test. Neither side seems ready to bend. Each holds strong economic goals and home pressures that add weight.
China warns it can hold a full trade fight if pressed. In contrast, Washington stays firm, calling out China’s trade moves. How this row ends may shape trade for years to come.
Observers will watch closely for any break or further fight at the summit. The outcome could affect markets around the world.
For continuous updates on this developing story and detailed market analysis, stay tuned to FXEmpire.
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