Price caps and tariffs on Chinese critical mineral exports neutralize Beijing’s key instrument of economic pressure on Western countries

On September 25, 2025, teams from G7 countries and the EU, meeting in Chicago, reviewed the Critical Minerals Action Plan, discussing the introduction of minimum prices and tariffs on critical mineral exports to counter China.

Meanwhile, on September 16, 2025, information emerged about the creation of a $5 billion U.S. government fund under the DFC to finance critical mineral projects.

China, which has built a monopolistic position in the rare earth market for decades, is facing restrictions on its market dominance for the first time due to actions by the G7 and EU.

Measures implemented by the G7, EU, and U.S. following Beijing’s April restrictions on rare earth exports to Western countries signal that Western nations will not succumb to China’s unilateral pressure.