BEIJING: China has agreed to keep rare earth exports flowing to global markets under a one-year agreement, US President Donald Trump said on Thursday following a meeting with Chinese President Xi Jinping in South Korea.
Trump, who offered few details about the deal, said it would likely be extended and that the matter was now “settled.” China has yet to comment on the discussions, which lasted nearly two hours.
“All of the rare earth has been settled,” Trump told reporters aboard Air Force One. “That’s for the world — you could say this was a worldwide situation, not just a US situation. There is no roadblock at all on rare earth. That will hopefully disappear from our vocabulary for a little while.”
Rare earth elements — a group of 17 minerals crucial to manufacturing cars, aircraft, and defense equipment — have become one of China’s strongest tools of leverage amid its trade tensions with the United States.
Export restrictions introduced in April triggered global shortages, particularly in magnet production, forcing some automakers to halt operations. Exports later recovered after Beijing struck agreements with Washington and the European Union.
Earlier this month, China expanded its export controls to cover 12 elements and additional processing equipment, with the new measures set to take effect in early November. It remains unclear whether the new agreement includes these latest restrictions.
US Trade Representative Jamieson Greer said China would not impose its proposed rare earth controls following the presidents’ understanding but declined to clarify whether current restrictions remain.— Reuters
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