The US has taken action against Chinese companies on National Day, but did not expect China's countermeasures to be so severe, and the use of rare earths caught the US by surprise.

During the National Day holiday, the U.S. Department of Commerce issued a new regulation, amending the Export Administration Regulations, which resulted in multiple foreign entities being added to the "Entity List" and facing related sanctions.

According to media reports, this includes 19 Chinese (including Hong Kong) entities, 3 addresses in Hong Kong, 9 Turkish entities, and 1 UAE entity.

The U.S. Department of Commerce stated that these entities are suspected of illegally procuring U.S.-origin electronic components and drone parts, which are ultimately used for Iran's military or its proxies, such as the Houthi rebels and Hamas' combat drones.

According to U.S. sanction regulations, these entities will be "deemed denied" from purchasing controlled items.

From an international perspective, such rules are seen as an extension of American unilateralism and "long-arm jurisdiction," further escalating the Sino-U.S. technology trade war, which could have negative chain reactions on the global economy.

Chinese officials have repeatedly criticized the U.S. measures as "bullying," ignoring evidence transparency, and using national security as an excuse to suppress China's high-tech industry.

In the short term, this may "effectively" block the channels for Iran's weapon-grade drones, but in the long run, it will exacerbate global division, with the cost mainly borne by developing countries and Chinese enterprises, while the U.S. may face retaliation (such as restrictions on China's rare earth exports). If there is no diplomatic easing, this could evolve into a broader technological cold war.

Moreover, what the U.S. did not expect is that China has already launched immediate countermeasures.

On the morning of October 9, the Chinese Ministry of Commerce issued Announcement No. 61 of 2025, announcing the decision to implement export controls on relevant rare earth items abroad.

There are three main measures worth noting. First, any organization or individual outside China must obtain an export license for dual-use items issued by the Chinese Ministry of Commerce before exporting the following items to other countries and regions outside China.

Second, export applications to overseas military users, as well as those to importers and end-users listed on the export control control list and the watch list (including their subsidiaries, branches, etc., which are controlled by more than 50%), will generally not be approved.

Third, export applications that may be used for the following final uses will generally not be approved: designing, developing, producing, or using weapons of mass destruction and their delivery systems; for terrorist purposes; for military use or enhancing military potential.

These three measures once again tighten our conditions for rare earth exports and basically eliminate the possibility of third-party countries transiting rare earth exports.

Now, the military use of rare earth resources has been clearly defined, specifying which uses cannot be exported at all.

The current technology battle between the U.S. and China has exceeded what people see on the surface.

The U.S. is taking extraordinary measures to guard against China, and China is trying to break through the U.S. technological barriers through its own efforts.

On the other hand, if you, the U.S., want to block China's path, we will not hesitate to take any means, and we will continue to tightly grasp our rare earth card, even if China and the U.S. have already had communication, our determination will not waver in the slightest.

Original: https://www.toutiao.com/article/7559109639049134602/

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