US, China Reach Temporary Truce on Rare Earth Exports — Earlier Curbs Stay in Place

The United States secured a brief reprieve from China’s tightening rare earth export controls after Presidents Donald Trump and Xi Jinping struck a deal to delay Beijing’s latest restrictions. However, earlier curbs on the critical minerals — vital for electric vehicles, defense systems, and electronics — will remain in force. Following a two-hour summit in South Korea on Thursday, Trump declared the rare earth dispute “settled,” saying China had agreed to keep exports flowing. Soon after, Beijing’s Ministry of Commerce announced a one-year pause on the export controls introduced on October 9, which would have expanded oversight to additional materials and rare earth products. Still, the decision does not lift restrictions imposed in April, which severely disrupted global supply chains by targeting seven key rare earths and essential magnetic materials used by automakers, chipmakers, and defense firms. Those measures triggered production slowdowns across industries reliant on Chinese supply. Analysts said the pause represents a “tactical stabilization” rather than a policy reversal, giving both sides breathing room amid mounting trade tensions. The October announcement had also included new export limits on battery manufacturing equipment and industrial diamonds, sparking panic among foreign buyers. It remains unclear whether those restrictions are covered under the latest agreement.