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China warns South Korean firms over supplying rare earths to US defence
Flags of China and US are displayed on a printed circuit board with semiconductor chips, in this illustration picture taken February 17, 2023.
Photo credit: Reuters
What you need to know:
- Beijing has reportedly ordered South Korean companies not to supply US defence firms with products containing Chinese rare earths - a move Seoul is still verifying.
- The warning comes after China restricted exports of rare earths, which are critical to electronics, electric vehicles and military equipment.
Beijing recently asked South Korean companies not to ship products containing China's rare earth minerals to US defence firms, the Korea Economic Daily reported on Tuesday, citing government and company sources.
The report had initially said China's Ministry of Commerce warned Korean companies they could face sanctions if they violated the export restrictions. The ministry delivered the message in letters to Korean companies which make power transformers, batteries, displays, electric vehicles, aerospace and medical equipment, the report said.
