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On Friday, June 27, 2025, China announced it would approve the export of rare earth minerals to the United States, a move seen as a significant step toward resolving recent trade tensions. According to CNN, the announcement from China’s Commerce Ministry came hours after the White House confirmed a trade agreement between the two nations.
Rare earth minerals are critical components in manufacturing advanced technologies, from mobile phones and computers to fighter jets. In recent weeks, trade disputes over these minerals had escalated, with both countries imposing retaliatory tariffs, further straining their relationship.
In a statement, China’s Commerce Ministry said, “Export applications meeting legal requirements will be approved, while the US will lift some restrictions imposed on China.” US President Donald Trump and Commerce Secretary Howard Lutnick confirmed the agreement, noting it was finalized earlier this month in London, pending approval from Trump and Chinese President Xi Jinping.
According to the International Energy Agency, China controls approximately 90% of global rare earth processing. Last month, the two nations reached an agreement in Geneva to reduce high tariffs, but its implementation stalled. The US accused China of failing to lift export restrictions on rare earths, which were imposed in response to US tariffs. In retaliation, the US restricted exports of chips, software, ethane, and jet engines and threatened to cancel visas for Chinese students. China, however, maintained it was complying with the agreement.
In June, officials from both countries resumed negotiations in London. Following these talks, Trump announced that both sides agreed to reduce export restrictions and tariffs, while also allowing Chinese students to study at US universities.
China’s Commerce Ministry expressed hope that the agreement would foster mutual understanding, reduce misunderstandings, and strengthen economic and trade relations, making them healthier, more stable, and sustainable.
AI/MR
