German Finance Chief Slams China’s Rare-Earth Export Limits

Lars Klingbeil, the German finance minister, expressed hope for a de-escalation following the meeting between US President Donald Trump and Chinese President Xi Jinping and criticized China's decision to tighten export controls on rare earths. On the sidelines of the IMF and World Bank meetings in Washington, Klingbeil, who also serves as the vice chancellor of Germany, stated, "We have made it clear within the G-7 that we do not agree with China's approach." "We are closely monitoring the situation and doing what we can politically to prevent further tensions between the United States and China," reads the statement. Policymakers and businesses that depend on China's near-monopoly in rare-earth processing and mining were alarmed when the country announced it would tighten restrictions on exports of key minerals. US Treasury Secretary Scott Bessent called for a coordinated response among the Group of Seven nations, though the finance chiefs failed to reach an agreement on concrete measures during their meeting Thursday.

 Klingbeil acknowledged that China's recent move could "endanger" the economies of Germany and Europe, and he stated on Friday, "I now have a bit of hope that the meeting between President Trump and President Xi can clear up many issues."