China has agreed to delay its latest round of rare earth export controls under a new deal reached between Presidents Donald Trump and Xi Jinping, though earlier restrictions on critical minerals will remain in place.
Rare earth elements—17 key materials essential for cars, aircraft, and defense systems—have become a major bargaining tool for Beijing. The export curbs introduced earlier this year have disrupted global supply chains, giving China strong leverage in trade negotiations.
Following a two-hour summit in South Korea on Thursday, Trump declared the rare earth dispute “settled,” saying China had committed to keep exports flowing. Shortly after, China’s Ministry of Commerce announced a one-year suspension of the new export controls introduced on October 9, which had expanded the list of restricted materials and tightened export rules.
However, restrictions imposed in April—covering seven rare earths and rare earth magnets crucial to the automotive, defense, and semiconductor industries—will remain in effect. These earlier measures led to shortages and production halts across the auto sector.
U.S. Trade Representative Jamieson Greer confirmed that China would pause the October restrictions but made no mention of the April controls.
According to Tim Zhang, founder of Singapore-based Edge Research, the move provides Beijing with “tactical stabilization” and strategic flexibility while keeping leverage intact.
Meanwhile, China’s October 9 announcement also included new curbs on electric battery equipment and industrial diamonds—two sectors vital to global manufacturing. The restrictions prompted companies like India’s Reliance Industries to rush shipments before the November deadline.
It remains unclear whether the new pause also applies to these battery and diamond controls, as the Ministry of Commerce has not yet clarified the matter.
