China’s Ministry of Commerce announced on Friday it is reviewing export license applications for sensitive items, including rare earths and related magnets, as part of its ongoing trade discussions with the United States. The move follows Washington’s recent decision to lift certain export restrictions on semiconductor design software and other technologies bound for China, signaling a thaw in bilateral trade tensions.
Rare earths, vital for electronics and defense technologies, have long been a strategic asset for Beijing, which dominates global production. During heightened U.S.-China trade disputes earlier this year, China had sharply curtailed rare earth exports, using them as leverage in negotiations. However, a framework trade agreement reached in May led to reduced tariffs on both sides and paved the way for greater cooperation.
In late June, the Chinese commerce ministry issued new export licenses to three of the country’s top rare earth producers, reportedly in line with the May deal. The ministry stated it is now actively working to implement further outcomes from that agreement and expressed openness to additional collaboration with Washington.
Meanwhile, Reuters reported that the U.S. also lifted bans on American-made jet engine components destined for China, adding momentum to the improving trade relationship.
Export controls on chip technology, introduced during the Trump administration, had been a significant point of contention for Beijing. With recent developments, both countries appear to be easing tensions, aiming to stabilize supply chains and support economic growth through mutual trade benefits.
These latest shifts reflect a broader strategy from both nations to balance national security concerns with commercial cooperation, particularly in critical sectors such as rare earths and advanced manufacturing technologies.