US-China Trade Talks: Rare Earth Export Controls Likely Delayed
The United States expects China to postpone rare earth export controls—a move tied to advancing trade negotiations between the two economic powers. Sources indicate Beijing may delay restrictions to ease tensions and facilitate a potential trade deal.
Why Rare Earths Are Crucial
Rare earth elements (REEs) are vital for manufacturing smartphones, EVs, military tech, and renewable energy systems. China controls 80% of global refined rare earth supplies, making export restrictions a major concern for the US and allies.
Rare Earths as a Bargaining Chip
China previously threatened rare earth export curbs during the 2019 US-China trade war, prompting global efforts to diversify supply chains. Now, US officials believe China will avoid disruptions to stabilize relations before finalizing a trade agreement.
US Response and Supply Chain Risks
The Biden administration is boosting domestic rare earth production and partnering with Australia and Japan. However, reliance on Chinese supplies remains high, and delays in exports could raise costs for tech, defense, and green energy sectors.
China’s Strategic Play
Analysts suggest China’s hesitation to impose restrictions may aim to secure US concessions on tariffs or tech export bans. The move could also position China as a stable trade partner amid Western efforts to reduce dependence.
What’s Next?
While optimism surrounds the delay, China could still enforce controls if talks falter. The US and allies must accelerate supply chain diversification to mitigate long-term risks.
Conclusion
The rare earth issue highlights the fragile US-China trade dynamic. A temporary delay in export controls offers short-term relief but underscores the need for resilient global supply chains.
