China suspends some critical mineral export curbs to the U.S. as trade truce takes hold

In a significant development signaling a thaw in trade tensions, China has announced a rollback of several restrictions on its exports of essential minerals and rare earth elements to the United States. This decision, confirmed by China's Ministry of Commerce, indicates that the ongoing trade truce between the two largest economies in the world is beginning to stabilize. As part of this initiative, China will suspend certain export controls on critical minerals utilized in military applications, semiconductors, and various high-tech industries, effective for one year. These restrictions, which were initially imposed on October 9, encompass limits on specific rare earth elements, lithium battery materials, and related processing technologies. The relaxation of these export controls follows discussions between U.S. President Donald Trump and Chinese President Xi Jinping that took place in Busan, South Korea, on October 30. Additionally, China has lifted retaliatory measures on the export of gallium, germanium, antimony, and other advanced materials, including synthetic diamonds and boron nitrides. These previous measures had been interpreted as a counteraction to the U.S.'s extensive semiconductor export restrictions imposed on China. China categorizes these critical minerals as 'dual-use items,' indicating their potential applications in both civilian and military sectors. Beyond defense, these minerals play a vital role in the semiconductor industry and other high-tech fields that are central to the ongoing U.S.-China trade friction. Moreover, Beijing has suspended stricter verification checks on the end-use and end-users of dual-use graphite exports to the U.S., measures that were introduced in December 2024 alongside broader export bans. China's dominance in the global production of critical minerals and rare earth elements has made its export policies a vital tool in trade negotiations. In the latest trade agreement with China, the U.S. has offered several concessions, including a 10 percentage point reduction in tariffs on Chinese imports and the suspension of Trump's heightened 'reciprocal tariffs' until November 10, 2026. Furthermore, the U.S. will delay the implementation of a rule that would classify majority-owned subsidiaries of Chinese firms on its entity list as blacklisted, announced on September 29.