(MENAFN- Live Mint) US Trade Representative Jamison Greer said on Sunday that the United States reached out to China to schedule a phone call after an announcement the it was expanding its rare earths export controls but Beijing deferred the action.

“I can tell you that we were not notified, and quickly, as soon as we found out from public sources, we reached out to the Chinese to have a phone call, and they deferred,” Greer told Fox News' on its "Sunday Briefing," program.

The trade representative also called China's move“a power grab,” Reuters reported on Sunday.

What was China's move?

China tightened its rare earth export controls on Thursday, expanding restrictions on processing technology and clearly stating its intent to limit exports to foreign defence and semiconductor manufactures.

The new measures, announced by the Ministry of Commerce, dramatically increase China's bargaining power in ongoing trade talk with the United States. The tightening came just weeks before a scheduled face-to-face meeting between Presidents Donald Trump and Xi Jinping in South Korea.

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As the world's dominant producer, China produces over 90% of the globe's processed rare earths and rare earth magnets. The 17 rare earth elements are vital materials in a wide array of high-tech products, including electric vehicles, aircraft engines and military radars.

Mimicking US rules that restrict exports of semiconductor-related products, Beijing is now widening its export controls to foreign companies that utilise Chinese rare earth equipment or materials, Reuters said in a news report.

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Furthermore, equipment used to recycle rare earths will now require a licence to export, joining a long list of restricted processing technologies.

The new extraterritorial rules will start on December 1, while the remainder commence immediately.

How did the US respond to it?

US President Donald Trump responded by slapping Beijing with an additional 100 per cent tariff , in addition to the existing 30 per cent duties, effective November 1 or sooner.

Additionally, the Trump administration will impose export controls on“any and all critical software” from American firms. Trump said the new tariffs are a response to China's new restrictions on rare earth elements.

The US and China have previously engaged in a tariff-driven trade war, with rates reaching 145% on US imports and 125% on Chinese imports. Negotiations later lowered the rates to 30% and 10%, respectively, but tensions remain, particularly over rare earths, and advanced chips, Mint reported earlier.

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