China has accused the United States of "causing panic" through an exaggerated reaction to the new restrictions imposed on rare earth exports, but it shows openness to negotiations to avoid escalating the trade conflict.

The spokesperson of the Ministry of Commerce, He Yongqian, stated that the American interpretation distorts China's measures, generating misunderstandings. Beijing justified the restrictions by the need to protect national security and to prevent the abusive use of these minerals in military applications. At the same time, China expressed its willingness to engage in trade discussions with the US.

The Trump administration, on the other hand, seeks to reduce dependence on China by developing a domestic rare earth industry and accused Beijing of manipulating prices. The US Treasury Secretary emphasized the need for a firm industrial policy to counteract China's "non-market" economy.