China's rare earth export controls delayed amid US-China trade talks

China has agreed to delay the introduction of its latest round of rare earth export controls as part of a deal brokered between Presidents Donald Trump and Xi Jinping. However, earlier restrictions on these critical minerals — whose impact has already disrupted global trade — remain in effect. 

Rare earths, a group of 17 elements essential in products ranging from electric vehicles and aircraft to smartphones and military equipment, have risen from relative obscurity to become a crucial leverage point for China. The export restrictions, introduced earlier this year, give Beijing the power to cut off access to foreign customers reliant on Chinese supply, upending global trade in these vital minerals. 

India’s foreign ministry confirmed on October 30 that several Indian companies have now received licenses to import rare earth magnets from China, a development reported by Reuters. This follows President Trump's meeting with President Xi in South Korea, where the two leaders held a nearly two-hour summit. Following the talks, Trump announced that China had agreed to maintain the flow of rare earth exports, describing the matter as “settled.” 

The Chinese export controls, initially announced on October 9, will be postponed by one year. Similarly, the US has agreed to delay its own measures, including a blacklist of majority-owned subsidiaries of Chinese companies added to the US Entity List in late September. This pause is seen as a step toward de-escalating trade tensions between the two nations. 

China remains the dominant force in the global rare earths supply chain, controlling the majority of production and processing capacity. These minerals are vital in the manufacturing of products such as semiconductors, missiles, and various advanced technologies. Over the past two years, Beijing has increasingly restricted the export of critical minerals, particularly targeting their use in military applications by other nations.