China pauses rare earth export restrictions after US talks
China is hitting pause on new export restrictions for rare earth elements—key materials for tech and clean energy—for a year after talks with the US.
Instead of stricter controls, the current licensing rules will remain in effect for one year from now, suspending stricter controls imposed in April 2025 and October 2022.
This move aims to cool off trade tensions and gives some breathing room to industries that rely on these minerals.
The deal's broader implications and temporary truce
The deal covers five more critical minerals (gallium, germanium, antimony, graphite, and rare earths) crucial for US manufacturing and even includes China stopping investigations into American chip companies—a big win for tech.
In return, the US is putting planned tariffs on Chinese goods on hold, skipping a 100% import tax, and letting China buy more American soybeans and farm products again.
While this helps supply chains now, it doesn't solve deeper economic rivalries—China still holds sway over these must-have materials.