China declared on Friday that it had reached an agreement with the United States to ease technology restrictions and facilitate the resumption of rare earth exports. Following weeks of negotiations, China has indicated its intention to authorize rare earth mineral exports to the United States, a move that came hours after U.S. officials confirmed the successful conclusion of a bilateral agreement, according to CNN.
“China will approve the export application of controlled items that meet the conditions in accordance with the law. The United States will cancel a series of restrictive measures taken against China accordingly,” China’s Commerce Ministry stated.
Rare earth minerals have emerged as a central point of contention in the trade dispute between China and the U.S., as the tariff battle has evolved into a broader struggle over supply chain dominance.
On Thursday, U.S. President Donald Trump and Commerce Secretary Howard Lutnick confirmed that both nations had finalized an agreement. The agreement is regarded as the formal confirmation of a mutual understanding reached during negotiations in London earlier this month, awaiting final endorsement from President Trump and his Chinese counterpart, Xi Jinping.
“We just signed with China yesterday,” Trump said without disclosing further details.
China’s Commerce Ministry expressed hope that both countries would collaborate to deepen cooperation and understanding to promote sustainable bilateral growth.
As per the International Energy Agency, China is responsible for nearly 90% of the world’s rare earth processing.
Despite Beijing’s repeated pledges to accelerate approvals for rare earth exports under its newly implemented dual-use licensing framework introduced in April, exporters are still required to obtain clearance for each shipment individually and provide detailed documentation on end use, CNN reported. Industry experts and insiders noted that U.S. firms, particularly those serving the defense sector, continue to face challenges in securing adequate rare earth supplies.
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