U.S. and China Reach Understanding on Rare Earths Shipments Amid Trade Negotiations

 Washington/Beijing, June 27 — The United States and China have reached a significant understanding aimed at expediting the shipment of rare earth materials to the U.S., a senior White House official confirmed on Thursday. The development marks a step forward in ongoing efforts to ease tensions in the protracted trade dispute between the world’s two largest economies.

President Donald Trump earlier announced that an agreement with China had been signed on Wednesday, without disclosing specific terms. He also hinted at a forthcoming deal that could potentially "open up" India, suggesting broader trade initiatives in the pipeline.

During high-level trade discussions held in Geneva this May, China reportedly committed to rolling back certain non-tariff countermeasures it had imposed since April 2 in retaliation for new U.S. tariffs. However, the exact mechanisms for unwinding these restrictions have remained unclear until now.

In a key retaliatory move, China had suspended the export of a broad range of critical minerals and rare earth magnets—materials vital to industries including automotive manufacturing, aerospace, semiconductors, and defense contracting—disrupting global supply chains.

“The administration and China have agreed on an additional understanding to establish a framework for implementing the Geneva consensus,” a White House official stated. “This understanding specifically addresses the resumption and expedited delivery of rare earth shipments to the United States.”

A separate U.S. official confirmed that the agreement was finalized earlier this week. U.S. Commerce Secretary Howard Lutnick, speaking to Bloomberg, said, “They’re going to deliver rare earths to us,” adding that once deliveries resume, the U.S. will lift its countermeasures.

In a statement released Friday, China’s Ministry of Commerce acknowledged recent progress, noting that both sides had finalized the framework for implementing the Geneva discussions. While the ministry did not explicitly mention rare earths, it confirmed that export applications for controlled items would be processed in accordance with domestic regulations.

The announcement signals incremental progress following months of economic friction and supply chain disruption. However, analysts caution that this is only an early step toward a comprehensive trade resolution. Notably, Beijing continues to tightly monitor rare earth exports to prevent materials from being diverted for U.S. military applications, contributing to delays in licensing.

The original Geneva agreement faced significant hurdles after China’s curbs on mineral exports prompted Washington to impose its own controls on high-tech goods bound for China, including semiconductor software and aerospace components.

Earlier this month, Reuters reported that China had issued temporary rare earth export licenses to suppliers serving top U.S. automakers, following mounting pressure from supply chain disruptions.

Later in June, President Trump stated that the evolving agreement would see China resume supplies of magnets and rare earth materials, while the United States, in return, would facilitate the admission of Chinese students to American universities.

While the rare earths agreement offers a promising development in trade diplomacy, both sides acknowledge that a definitive, long-term trade pact will require sustained dialogue and political will.