Beijing recently asked South Korean companies not to export products containing China’s rare earth minerals to U.S. defense firms, the Korea Economic Daily reported on Tuesday, citing government and company sources.
The report said China’s commerce ministry delivered the message in letters to Korean companies which make power transformers, batteries, displays, electric vehicles, aerospace and medical equipment, all of which use the key materials.
The letters said Korean companies could face sanctions if they violate the export restrictions, the report said.
South Korea’s Industry Ministry was not immediately available for comments outside business hours.
Early this month, China placed export restrictions on rare earth elements as part of its sweeping response to U.S. President Donald Trump’s tariffs, squeezing supply to the West of minerals used to make weapons, electronics and a range of consumer goods.
(Reporting by Hyunjoo Jin; Editing by Kim Coghill)
