Beijing recently asked South Korean companies not to export products containing China's rare earth minerals to U.S. defense firms, the Korea Economic Daily reported on Tuesday, citing government and company sources.

China threatens South Korea with sanctions for exporting products with Chinese minerals to the USA. China possesses crucial resources and technology that can significantly affect the American economy.

South Korea's acting president Han Duck-soo expects this week's trade talks with the United States to pave the way for a mutually beneficial outcome, he said during a cabinet meeting on Tuesday.

South Korea's acting President Han Duck-soo said on Monday he expected trade talks with the United States this week in Washington to be the start of meaningful cooperation, but added that negotiations may not be easy.

South Korea and the US will kick off trade negotiations this week as the Asian export powerhouse seeks to persuade Donald Trump’s administration to ease the punitive levies that are starting to bite the economy.