China Lifts Rare Earth Controls in Major US Trade Deal
China has agreed to suspend additional export controls on rare earth metals and end investigations into US semiconductor companies as part of a significant trade agreement with the United States. The White House announced the breakthrough deal on Saturday, following the first face-to-face meeting between President Donald Trump and Chinese leader Xi Jinping during Trump’s second term.
Key Trade Concessions
Under the new agreement:
- China will issue general export licenses for rare earths, gallium, germanium, antimony and graphite
- This effectively lifts export curbs imposed in April 2025 and October 2022
- China will suspend broad restrictions on rare-earth magnets
- The US will scale back expansion of curbs on Chinese companies
US Tariff Relief and Agricultural Benefits
In return for China’s concessions, Washington will extend the pause on some reciprocal tariffs on Chinese goods for another year and cancel plans for a 100% tariff on Chinese exports scheduled for November. The US will also reduce a fentanyl-related tariff from 20% to 10%.
China committed to resume purchases of American agricultural products, pledging to buy 12 million metric tons of soybeans this season and at least 25 million tons annually over the next three years.
The agreement marks a significant de-escalation of trade tensions that had been rattling global markets for months, helping stabilize US-China relations through mutual concessions on critical mineral exports and tariff relief.
