China has reportedly asked South Korean companies to refrain from exporting products that contain rare earth minerals sourced from China to U.S. defense companies. According to a report by the Korea Economic Daily, the Chinese Ministry of Commerce issued letters to South Korean firms involved in manufacturing power transformers, batteries, displays, electric vehicles, aerospace, and medical equipment—all of which rely on these critical materials. The letters warned that companies could face sanctions if they violate these export restrictions.
Earlier this month, China imposed export controls on rare earth elements as part of its broader retaliatory measures against U.S. tariffs, reducing the supply of these essential materials used in a wide range of products, including weapons, electronics, and consumer goods.
