Chinese responses: Rare Earth Export Controls, Port Fees on Chinese vessels, Grabbing Nexperia

Rare Earth Export Controls, Port Fees on Chinese vessels, Tariffs, Grabbing Nexperia – summary

We have to note that none of this comes out of the blue.  China has faced only unwillingness from U.S. trade negotiators and a series of what we can only call unfriendly actions, designed to coerce.  The time is over.  What is happening here is a slew of actions by China that confirms what I’ve intuited since the beginning of the tariff onslaught.  If it gets too difficult to trade, there will not be trade.  At this time China seems to be at that point.  They don’t care any longer about trade with the U.S.

The Chinese MOFCON spokesperson remarked:

Rare Earth Export Controls: Directly aimed at military activity and weapons manufacturing, to better defend world peace and regional stability.

These export controls are directly aimed at weapons manufacturing and are intended to reduce military conflicts and support non-proliferation.

They are not export bans. Licenses for eligible applications will be granted.

China announced these controls before implementing them.

These export controls will support the security and stability of global industrial and supply chains-

China’s national security is mentioned and this is easy to see.  They won’t sell products to those that manufacture weapons intended to threaten China.

Port Fees on Chinese Vessels:  This is a confusing conglomeration of payment for tonnage on Chinese-built vessels, partially Chinese-built vessels, and generally a game of confusion.

MOFCON states:

Particularly since the China-U.S. economic and trade talks in Madrid in September, the U.S., in just 20 days, has introduced a string of new restrictive measures targeting China. It has put multiple Chinese entities on the Entity List and Special Designated National List; arbitrarily expanded the scope of control over businesses with the Affiliates Rule that affects thousands of Chinese companies; and persisted with the implementation of Section 301 measures targeting China’s maritime, logistics and shipbuilding industries in disregard of China’s concerns and goodwill. The U.S. actions have severely harmed China’s interests and undermined the atmosphere of bilateral economic and trade talks, and China is resolutely opposed to them.

The Spokesperson notes that the U.S. has shown a negative attitude and willfully persists in implementing those measures, issuing a notice on October 3 setting out the specific requirements for imposing fees on Chinese vessels.

In response to U.S. actions, China took countermeasures and decided to charge special port fees on U.S.-linked vessels.  China describes these countermeasures as necessary acts of passive defense.

Tariffs:  Willful threats of high tariffs are not the right way to get along with China. … If the U.S. insists on going the wrong way, China will surely take resolute measures to protect its legitimate rights and interests.

The MOFCON Statement:  http://english.mofcom.gov.cn/News/SpokesmansRemarks/art/2025/art_c202dcc0433d476db52b1e7f7fe53926.html

Dutch Grab of Nexperia:  The Dutch government said on Sunday that it has made a “highly exceptional” decision to intervene in Nexperia, a subsidiary of Chinese company Wingtech, citing concerns that it could “pose a risk to Dutch and European economic security.” On September 30, the Dutch Ministry of Economic Affairs issued an administrative order restricting the business decisions of Nexperia and its affiliated entities, effectively depriving Chinese shareholders of their standard control. Wingtech subsequently issued a statement, expressing a strong protest against such discriminatory treatment targeting Chinese-funded enterprises. It is evident to anyone with clear judgment that the Dutch government is seriously harassing a chip company controlled by Chinese enterprises under the pretext of a fabricated “national security” concern.

In the early stages of capitalism, some countries relied on violence and colonial plunder to accumulate primitive capital, even fostering within their own cultures the misguided historical notion that “plunder brings wealth.” In today’s geopolitical context, the Dutch government, under the pretext of “supply chain security,” has imposed excessive interference on Chinese enterprises and then cloaked its asset seizure under a façade of legality – a seamless sequence of actions that inevitably evokes memories of certain dark chapters in this country’s history. It is no wonder that some have wryly observed that

a few Western countries now treat “national security” as a privateering license, a reflection of “colonial genes” awakening in the 21st century.

Global Times editorial:  https://www.globaltimes.cn/page/202510/1345566.shtml

It is clear from trade numbers that China’s trade is increasing with the rest of the world, while trade with the US is decreasing.  Professor Wolff aptly describes the situation, stating that the trade environment in the US does not encourage trade but rather discourages it.

The decrease is not only in trade numbers.

US treasuries held by China are reducing.

De-dollarization is increasing.

So it is a 3 front wall of pressure, epitomized by footage of U.S. soldiers standing in food distribution lines.

China has chosen an optimum moment to rebalance power.

The tweets and twitters are interesting.  One person says .. Do Your Chrismas Shopping Now, and here is another illustrating the real effect on U.S. Business.

For those of you who think this tradewar is not serious…. pic.twitter.com/Bz0mhnCw5i

— The key to success is documentation. (@VietVantage) October 13, 2025

I must hold to my point that if trade is made too complicated, it will not happen.  As Russia is fighting NATO, China has entered the arena with a view to an economic decapitation strike to put the U.S and the collective West in the place of normal countries without exorbitant privilege.  China clearly feels strong enough now, as evidenced by its actions at the WTO, where, for trade advantages, they are no longer insisting that it is a developing country.

Even trade numbers and reported statistics are difficult these days, as the effect of de-dollarization is not easy to measure.  How do the IMF and World Bank count that which is not there?  Even Africa has now floated its own ratings organization, and Russia and India are doing their business in Yuan.  It is not only ‘that which is not there’, it is also new business being done, and the values are not flowing through the usual channels for statistical reporting.  For myself, I am watching trends and not specifically numbers.  The change in the world is growing massive, and one of those trends is that China is creating its own certification system for commercial aircraft, for example.    This period is truly historical, with comprador countries lacking agency, madly spinning between the new large poles being formed.  One example is that we are seeing more and more media that Turkey is wavering between west and mulitpolarity.

There are some numbers which on the face of it and standing alone, tells the story. In September alone, China’s exports grew by 8.3%, the fastest pace in months.

Shipments to the US fell by 27%. Exports to the EU rose more than 14%, exports to ASEAN nations were up by almost 16%, and exports to Africa rose by 56%.

Direct shipments to the US now make up barely 10% of China’s total exports. The US is learning a harsh, obvious truth that it should have learned a long time ago. The world is bigger than the United States, and the United States is no longer essential.

Hold onto your hats!