U.S. Senator Steve Daines has called on Washington and Beijing to refrain from escalating tensions through retaliatory measures, following a series of recent actions that have reignited friction between the two countries. The Republican senator from Montana, who serves on both the Senate Foreign Relations and Finance Committees, described the cycle of tit-for-tat responses as “unfortunate developments” and expressed hope that further escalation could be avoided.

Tensions have risen again just weeks after U.S. President Donald Trump and Chinese President Xi Jinping agreed to ease hostilities during their summit in Beijing. Last week, China imposed export controls targeting two American rare earth companies, MP Materials and USA Rare Earths, along with eight additional U.S. firms. These new restrictions prohibit exporters from supplying dual-use goods—items that have both civilian and military applications—to the covered companies and prevent the transfer of China-origin dual-use items to them by any entity worldwide. In addition, Beijing barred 46 U.S. firms from participating in Chinese government procurement.

China said these measures were a direct response to actions taken by the Pentagon, which designated more than 60 Chinese technology companies, including Alibaba Group Holding, Baidu, and BYD, as military-linked entities earlier in June. The U.S. Defense Department’s list identifies these firms as “Chinese military companies operating in the United States.” Alibaba has since filed a lawsuit challenging its inclusion on this roster, arguing that it was added without substantial evidence, violating constitutional due process and the company’s right to free speech.

Meanwhile, U.S. Representative Rob Khanna, ranking member of the House Select Committee on China, criticized Beijing’s export controls as “wrong” and pledged to pursue measures to reduce U.S. dependence on China for critical materials. He highlighted China’s monopoly over processing key minerals such as graphite, gallium, germanium, and rare earth elements—materials vital to military technologies, consumer electronics, and renewable energy sectors. Khanna emphasized ongoing efforts to diversify supply chains and work with allies to secure independent access to these minerals.

The U.S. Congress is advancing bipartisan legislation, including the SECURE Minerals Act and the Critical Mineral Consistency Act, aimed at strengthening domestic supply chains and countering China’s dominance in critical mineral processing. The Trump administration has also invested billions to revive domestic mineral production capacity and negotiated several bilateral and multilateral agreements. However, analysts caution that dislodging China’s entrenched position will likely require many years.

Despite the current tensions, Senator Daines maintained that U.S.-China relations remain “in a much better position than a year ago” and expressed optimism that President Xi’s upcoming visit to the United States could help stabilize the relationship. He noted that both leaders communicate frequently and that efforts to resolve disagreements would continue.