U.S.-China Relations (April 21, 2025)

China Warns Against U.S.-Led Trade Deals
China has issued a strong warning to nations considering trade agreements with the United States that could undermine Chinese interests. The Chinese Ministry of Commerce stated that any such moves would prompt “firm and necessary countermeasures.” This comes as the U.S. continues to expand trade pacts in the Indo-Pacific, raising tensions with Beijing. Reuters

China Halts Exports of Key Rare Earth Minerals
In response to heightened trade restrictions by the U.S., China has effectively halted exports of rare earth elements crucial for electronics and defense production. Materials like gallium and germanium are now under strict export controls, which analysts warn could disrupt global supply chains and increase costs for American manufacturers. Reuters

Chinese State Funds Withdraw from U.S. Investments
Amid escalating trade tensions, major Chinese sovereign wealth funds have begun pulling back investments in U.S. private equity firms. The move, described as a strategic retreat, reflects Beijing’s efforts to reduce economic exposure to Washington and reinforce domestic capital security. Reuters

China Reportedly Suspends Orders of Boeing Aircraft
A Boeing 737 Max originally built for China’s Xiamen Airlines has been redirected back to Boeing’s Seattle facility. Reports suggest China is suspending purchases of U.S.-made aircraft and aviation parts, signaling a deepening rift in economic and technological cooperation between the two powers. Business Insider

U.S. and Philippines Begin Joint Military Exercises Near Taiwan
The U.S. and the Philippines have launched joint military drills in areas near the South China Sea and Taiwan. The exercises, involving thousands of troops and live-fire training, are aimed at strengthening defense cooperation amid growing Chinese assertiveness in the region. Bloomberg