Select Committee on China Chairman John Moolenaar responded to reports that Chinese President Xi Jinping has expanded restrictions on rare earth exports. In a statement, Moolenaar described the move as a direct challenge to the United States and its leadership.
“China’s action today is an economic declaration of war against the United States and a slap in the face to President Trump amid his efforts to fight for a level-playing field. China has fired a loaded gun at the American economy, seeking to cut off critical minerals used to make the semiconductors that power the American military, economy, and devices we use every day including cars, phones, computers, and TVs. Every American will be negatively affected by China’s action, and that’s why we must address America’s vulnerabilities and build our own leverage against China. We should immediately pass my legislation to end preferential trade treatment for China, build a resilient resource reserve of critical minerals, secure American research and campuses from Chinese influence, and strangle China’s technology sector with export controls instead of selling it advanced chips. Xi Jinping only respects strength and I am ready to work with patriotic business leaders, our congressional leadership, and the Trump Administration to show China that its belligerent trade actions will be met with serious efforts to protect the American people, secure our supply chains, and cut off the flow of U.S. capital and technology into China," said Moolenaar.
Earlier in the day, President Trump indicated through an online post that he plans financial countermeasures in response to China's actions. He stated that "many countermeasures" are being considered seriously.
President Trump previously announced intentions for his administration to reduce reliance on Chinese manufacturing by promoting domestic production capabilities and considering increased tariffs or decoupling strategies.
Last month, Chairman Moolenaar sent a letter urging President Trump to coordinate with allies on responses to Beijing's control over rare earths essential for defense industries. In this letter, he suggested restricting landing rights for Chinese airlines in allied countries until export flows resume normally; reviewing policies related to aircraft sales and services; and limiting investments in China's aviation sector alongside international partners.
“These steps would send a clear message to Beijing that it cannot choke off critical supplies to our defense industries without consequences to its own strategic sectors,” Moolenaar wrote in September. “By acting together, the U.S. and its allies can strengthen our resilience, reinforce solidarity, and create real leverage with China.”
