China Reverses Rare Earth Metal Restrictions: New Trade Agreement Boosts Global Stability

Historic Agreement to Enhance Global Stability

In a significant step to ease global trade tensions, the White House announced details of a new agreement between US President Donald Trump and Chinese President Xi Jinping. Under this agreement, China will suspend the restrictions it imposed last October on the export of rare earth metals, a group of 17 unique metallic elements that play a vital role in modern technologies.

China will also resume issuing general export licenses for these metals, in addition to other elements such as gallium, germanium, antimony, and graphite. This measure aims to ensure stable supplies for end-users in the United States and their suppliers worldwide.

Importance and Applications of Rare Earth Elements

Rare Earth Elements (REEs) are a group of 17 chemically similar elements that, despite their name, are not rare in the Earth's crust, but are difficult to find in economically extractable concentrations and purify (Tufts Now, April 15, 2025).

These metals are essential for a wide range of advanced technological products, including electronics like smartphones and computer displays, renewable energy applications such as wind turbines and electric vehicles, as well as medical equipment and defense systems (U.S. Department of Energy). Their unique magnetic, phosphorescent, and catalytic properties make them indispensable in today's technical world.

Background of Chinese Restrictions and Their Repercussions

The Trump administration confirmed that this reversal aims to nullify Chinese restrictions on rare earth export, which were imposed in April 2025 and October 2022.

China is known for being the world's largest producer of these vital elements, which are a fundamental component in the manufacturing of a wide range of advanced technological products.

Economic Impact and Trade Tensions

Previously, the Chinese government had implemented restrictions requiring foreign companies to obtain licenses to export even the smallest quantities of these metals, which drew a strong reaction from the Trump administration, which threatened to impose additional customs duties of up to 100%.

Now, the White House announced the suspension of plans to impose these additional tariffs, in addition to a temporary halt on other tariffs on Chinese goods for a full year. This step is expected to ease trade tensions between the United States and China, and enhance global supply chain stability for rare earth metals.