China US Ease Rare Earths Trade Restrictions

China and the United States have reached an agreement to ease trade restrictions on rare earths and technology exports, according to a statement from Beijing’s Commerce Ministry. This pact aims to streamline the export licensing process for rare earths and other controlled materials, while the US has committed to rolling back certain restrictions on Chinese exports.

Under the new agreement, Chinese authorities will expedite the approval of export licenses for items subject to export-control laws. These items include magnets and other critical components essential for electronics, renewable energy, and defense industries. However, the specific categories beyond magnets that will benefit from these eased restrictions remain unspecified.

In response, the US administration has pledged to rescind various existing measures that had been targeting Chinese exports. A spokesperson for Beijing’s commerce department stated that the US will "correspondingly cancel a range of existing restrictive measures imposed against Beijing," though the exact list and timeline for lifting each measure were not detailed.

China’s Ministry of Commerce expressed hope that both nations will continue to enhance consensus, reduce misunderstandings, and strengthen cooperation to promote the healthy, stable, and sustainable development of economic and trade relations between China and the US.

Experts have cautioned against premature celebration, noting that both sides are treating rare earths as a high-stakes bargaining chip for future negotiations. Alfredo Montufar-Helu, a senior advisor at a think tank, described the statement as encouraging but urged restraint, pointing out that the trade in these minerals is likely to remain somewhat constrained.

This announcement follows remarks by US President Donald Trump, who noted that the two countries had reached "an additional understanding of a framework to implement the Geneva agreement," referring to the mid-May Geneva talks. Earlier this month, top trade envoys from both countries met in London to hammer out the initial implementation plan during two days of intense negotiations.

Those discussions aimed to stabilize tensions after both sides accused the other of dragging its feet. Washington complained that Beijing was slow to loosen its rare earths export curbs, while China objected to American tech restrictions and visa revocations for students. The preliminary accord had already called for a 90-day pause on most tariffs each country levied on the other and the rollback of some other punitive steps.

Friday’s update seems designed to build on that truce by specifying how and when trade in strategic minerals and technologies will flow more freely. However, until Beijing publishes clear guidance on which export controls will be relaxed, and until Washington lists the precise measures it plans to remove, companies are likely to remain cautious in their planning.

For now, firms on both sides will be watching closely for official regulations and implementation dates. If the promises made in Beijing’s statement materialize into concrete policy, manufacturers from consumer electronics giants to electric vehicle producers could breathe easier knowing vital components may soon move more freely between the world’s two largest economies. However, without a detailed roadmap, lingering doubts over the pace and scope of these changes may well temper any immediate surge in trade.