SEOUL – China has recently urged South Korean companies to refrain from sending products containing rare earth materials to US defense firms.

This request was reported by Korea Economic Daily on Tuesday, citing government and industry sources.

According to initial reports, China's Ministry of Commerce warned South Korean companies that they could face sanctions if they violate export restrictions.

The warning was reportedly delivered through letters addressed to various South Korean firms, including those in power transformer manufacturing, battery production, display technology, electric vehicles, aerospace equipment, and medical devices.

However, the report was later corrected to indicate that the message came from the "Chinese government" rather than solely China’s Ministry of Commerce.

On Wednesday (April 23), South Korea’s Ministry of Industry stated that it was verifying the information with the Chinese government and affected South Korean companies.

“So far, there has been no official confirmation that South Korean companies have received letters from the Chinese government as reported,” the ministry stated.

Earlier this month, China imposed export restrictions on rare earth elements as part of its retaliatory measures against US tariffs. The restrictions aim to control the supply of minerals crucial for weapons production, electronics, and various consumer goods.

China produces about 90% of the world's rare earth supply, comprising 17 essential elements. While the United States has reserves of some rare earth materials, they are considered insufficient to meet the long-term needs of US defense firms.

Senior South Korean government officials are scheduled to meet US officials in Washington on Thursday to discuss tariff and trade-related issues.

On Monday (April 21), China also warned other nations against engaging in broader economic agreements with the US that could harm China’s economic interests. (DK/LM)