China Threatens South Korean Firms Over Exports to US Containing Chinese Metals

China has reportedly begun to pressure South Korean companies exporting products to the United States that contain critical metals sourced from China, according to reports by South Korean media.

As reported by The Korean Economic Daily on Tuesday, April 22, 2025, the Chinese government has instructed at least two South Korean transformer manufacturers to cease shipments of electric equipment containing Chinese heavy rare earth metals to the US military or its contractors.

The official notice reportedly warned that failure to comply may result in regulatory actions, including sanctions.

A South Korean government official cited in the report said that similar notices have been sent to firms in the EV, display, battery, medical device, and aerospace sectors.

Han Ah-reum, a researcher at the Korea International Trade Association, noted that with more US companies becoming targets of China’s export bans and retaliatory tariffs, South Korea’s major export-driven conglomerates could face significant setbacks.

If verified, this would be the first instance of China directly targeting a third-party country amid its trade conflict with the US.

A spokesperson for China’s Ministry of Commerce explained that the products in question are considered dual-use items, and that export control of such goods is in line with common international practices.

He added that this move reflects China's consistent position as a responsible global power, committed to maintaining world peace and regional stability.

Meanwhile, China-South Korea relations are facing new strains, as Seoul grows increasingly wary of Chinese installations in the Yellow Sea, which it suspects may be part of a broader territorial assertion. Beijing insists the structures are meant for aquaculture purposes only.

If China—South Korea’s largest trading partner—continues to expand its economic influence, this could have serious implications for South Korea’s export-reliant economy.

At the same time, China is rallying global support against US protectionist policies, aiming to position itself as a stable and responsible alternative to Washington.

Just last week, President Xi Jinping embarked on a brief tour of Southeast Asia to reinforce Chinese influence. Around the same time, Japanese media reported that PM Fumio Kishida received a letter from Chinese Premier Li Qiang, urging Japan to align with Beijing in resisting trade protectionism.