China Rare Earth Supply Sparks Fresh Trade Talks

A cautious thaw in US-China trade relations is taking place, as both parties are going to hold discussions about the rare earth trade again. China and the US were silent for quite a time, but have now shown each other willingness to talk after the tension caused by the supply of rare earths from China. The discussions came after a long period during which technologies and the clean energy industry worldwide were affected by the combination of tariffs, export restrictions, and uncertainty. The representatives from both capitals seem to be softening their voices now. China assured that it would keep granting export licenses for legitimate industrial use. At the same time, the US gave a hint that it might remove some of its previous restrictions in order to reduce the pressure in the market.Beijing once again emphasised the legality and transparency of its export control system. It further explained that licences already issued would allow rare earth exports for civilian purposes to continue. Moreover, the Ministry of Commerce hinted at the possibility of certain industries being excluded from these restrictions.China is the largest producer of rare earths in the world, accounting for over 70% of the total output. These materials are indispensable for the manufacture of smartphones, electric vehicles, wind turbines, and military hardware. With the global demand increasing, rare earth control has turned into a significant geopolitical issue. Chinese officials mentioned that the export restrictions are meant to secure resources, not to use trade as a weapon. They added that the policies support ecological sustainability and careful extraction. Nevertheless, the international experts think that the step taken is a strategic signal in the rivalry that is growing.

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