In light of high-level phone talks between the United States and China, China has approved export permits for some rare earth items to the U.S. This indicates some movement toward easing the rare mineral issue, which has been a key point of conflict between the two countries.
China’s Ministry of Commerce stated in a statement released on the afternoon of the 7th, “According to regulations, a certain number of export permit applications related to rare earth items has been approved.” It added, “Rare earths have both military and civilian applications, and export controls on them are measures recognized internationally.”
This announcement came after U.S. President Donald Trump revealed in a phone call with Chinese President Xi Jinping that “President Xi agreed to allow rare earth exports to the U.S.”
Earlier, Reuters reported, citing sources, that China had issued temporary export permits to rare earth suppliers of the three major automobile manufacturers in the U.S.
China’s Ministry of Commerce stated, “We recognize the increasing demand in advanced industries such as robotics and new energy vehicles and, as a responsible trading nation, we are reviewing export permit applications while considering the private demand and concerns of each country.” It further noted, “We will continue to approve reasonable applications.”
China also emphasized that export controls on rare earths are directly related to national security. The Ministry explained, “Managing rare earths is to protect national interests and fulfill international obligations such as preventing the proliferation of weapons of mass destruction.”
Since April 4th, China has been controlling the export of seven types of rare earth elements, including samarium, gadolinium, terbiump, dysprosium, lutetium, scandium, and yttrium, as well as related alloys, oxides, and compounds. Export requires approval from authorities, and recently, a reporting system for transaction history and customer information has also been introduced to strengthen regulations.
Meanwhile, the U.S. and China reached an agreement to lower tariffs and ease some non-tariff measures during their first high-level trade negotiations held in Geneva, Switzerland, last month. However, President Trump expressed discontent, stating, “China is not lifting restrictions on rare earth exports.”
In response, China has countered that “the U.S. is implementing discriminatory export controls regarding AI semiconductors, semiconductor design software, and visas for Chinese students.”
The two countries are scheduled to resume high-level trade negotiations in London, UK, on the 9th. More detailed discussions regarding export controls on rare minerals are expected to take place in these negotiations.