After weeks of high-stakes negotiations, China and the United States have finalized a major trade agreement that will allow the export of rare earth minerals from China to the U.S., easing tensions in a crucial segment of global supply chains.
On Friday, China’s Ministry of Commerce confirmed it will approve applications for the export of specific rare earth materials that meet legal conditions. The move comes just hours after officials at the White House revealed that significant progress had been made in negotiations.
“China will approve export applications for eligible controlled items in accordance with the law. The United States will lift a number of restrictive measures imposed on China,” the ministry stated.
Rare earth elements are essential components for everything from smartphones and electric vehicles to missile systems and fighter jets. Their strategic importance has made them a core issue in trade relations between the two global superpowers.
President Donald Trump acknowledged the agreement during a press event at the White House on Thursday, stating: “We just signed with China yesterday,” though he provided no further details.
U.S. Secretary of Commerce Howard Lutnick told Bloomberg News that “China will deliver the rare earths to us,” adding that once that happens, “we’ll remove our countermeasures”—referring to export restrictions imposed by the U.S. last month following accusations that China had violated a previous agreement reached in Geneva.
The agreement formalizes an understanding initially reached earlier this month in London but was awaiting approval by President Trump and Chinese President Xi Jinping.
China’s Ministry of Commerce expressed hope that both sides could “continuously strengthen consensus, reduce misunderstandings, and promote healthy and stable development of China-U.S. economic and trade relations.”
Despite fierce strategic rivalry, the U.S. and China have shown a willingness to compromise when economic interests are threatened. Trump’s deal-oriented approach clearly influenced this pragmatic solution. Still, the underlying tensions over technological dominance and trade fairness remain unresolved, suggesting that future flare-ups are likely unless a broader framework of trust is established.