China hits pause on rare earth clampdown
On October 30, China announced it would pause for one year certain export restrictions on rare earth materials and related technologies that it had introduced earlier in the month. The Ministry of Commerce said the suspension follows trade discussions held in Malaysia and coincides with talks between Chinese leader Xi Jinping and U.S. President Donald Trump in South Korea.
The original measures, announced on October 9, required exporters to obtain permits for technologies used in the mining, smelting, and other processing stages of rare earths. They also covered equipment used in assembling, adjusting, maintaining, repairing, and upgrading production lines. China is the world’s leading supplier of rare earths, which are crucial for producing magnets used in automobiles, electronics, and defense systems.
Since April, Beijing has mandated licenses for certain rare earth exports, resulting in disruptions to global manufacturing. The United States has accused China of delaying approvals, making the issue a central point in recent trade talks. Chinese officials said they will use the one-year pause to review and improve the export control plans.
