Moolenaar: China's Rare Earth Restrictions Are a Slap in the Face to President Trump

Today, Select Committee on China Chairman John Moolenaar (R-MI) released the following statement in response to reports that People's Republic of China (PRC) President Xi Jinping has aggressively expanded China's rare earth restrictions ahead of his potential meeting with President Trump:

“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."

Background:

Last month, Chairman Moolenaar sent a letter President Trump urging strong, coordinated action with U.S. allies to counter Beijing’s continued stranglehold on rare earths and magnets critical to defense and advanced manufacturing.

In the letter, Chairman Moolenaar proposed:

• Restricting or suspending Chinese airline landing rights in the U.S. and allied nations until China restores full, non-discriminatory export flows of rare earths and magnets.
• Reviewing export control policies governing the sale of commercial aircraft, parts, and maintenance services to China.
• Restricting outbound investment in China’s aviation sector in coordination with key allies.

“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 the September letter. “By acting together, the U.S. and its allies can strengthen our resilience, reinforce solidarity, and create real leverage with China.”