UPSC Prelims Practice Questions — China adds to its economic pressure toolkit using U.S. trade truce as cover

Q1. China's rare-earth export licences and 'Unreliable Entity List' measures are issued and operationalised primarily by which one of the following bodies?

  • A. Ministry of Commerce (MOFCOM)
  • B. Ministry of Industry and Information Technology (MIIT)
  • C. General Administration of Customs
  • D. Ministry of Natural Resources

Q2. In the context of China's economic-coercion toolkit, the 'Unreliable Entity List' is best described as which one of the following?

  • A. A blacklist maintained by China's Ministry of Commerce under which foreign firms may face import/export bans, investment restrictions, travel and visa bans, and fines
  • B. A registry of Chinese exporters that have been licensed to ship controlled rare-earth items abroad
  • C. A WTO-maintained list of members found to have violated their export-control commitments
  • D. A list of dual-use technologies whose export from China is prohibited outright

Q3. The concept of 'weaponised interdependence', describing how states controlling network hubs coerce others, was first formulated by which one of the following?

  • A. Henry Farrell and Abraham Newman
  • B. Robert Keohane and Joseph Nye
  • C. Albert Hirschman and Susan Strange
  • D. Daniel Drezner and Henry Kissinger

Q4. In the theory of weaponised interdependence, cross-border interbank payment messaging is routed through a classic financial 'chokepoint' operated by which one of the following?

  • A. SWIFT (Society for Worldwide Interbank Financial Telecommunication)
  • B. International Monetary Fund
  • C. Bank for International Settlements
  • D. World Bank

Q5. As part of the October 2025 Busan trade truce, China's flagship agricultural commitment was the resumption of large-scale purchases of which one of the following United States commodities?

  • A. Soybeans
  • B. Wheat
  • C. Maize (corn)
  • D. Cotton

Q6. At the October 2025 Busan summit, China agreed to delay for one year the export restrictions it had announced in October 2025 on how many rare-earth metals (while retaining its earlier April 2025 curbs)?

  • A. Five
  • B. Seven
  • C. Twelve
  • D. Two

Q7. Under the GATT 1994, Article XI is best described as the provision that —

  • A. requires the general elimination of quantitative restrictions such as quotas and export bans, other than duties, taxes or charges
  • B. permits otherwise-inconsistent measures a member considers necessary to protect its essential security interests
  • C. allows general exceptions for measures relating to the conservation of exhaustible natural resources
  • D. mandates that any permitted quantitative restriction be administered on a non-discriminatory basis

Q8. According to USGS 2025 estimates, China holds the world's largest share of rare-earth reserves, amounting to approximately what percentage of the global total?

  • A. About 48%
  • B. About 70%
  • C. About 90%
  • D. About 13%