Rare earth truce? China agrees to ease US supply concerns after Beijing summit – Firstpost

China agreed to address US concerns over shortages of critical rare earth minerals and related supply chain disruptions, according to a White House factsheet released after last week’s summit between US President Donald Trump and Chinese President Xi Jinping in Beijing.

The move could offer temporary relief to American industries dependent on Chinese supplies of strategic minerals used in defence systems, semiconductors, aerospace equipment and electric vehicles, even as broader trade tensions between Washington and Beijing remain unresolved.

The White House said “China will address US concerns regarding supply chain shortages related to rare earths and other critical minerals, including yttrium, scandium, neodymium, and indium.”

The announcement formed part of a wider package of trade understandings reached during the two-day Trump-Xi summit, which also included Chinese commitments to purchase more US agricultural goods and aircraft.

However, China’s Ministry of Commerce did not mention rare earths in its own official statement released on Saturday, highlighting persistent gaps in how both governments are portraying the outcomes of the summit.

Rare earth controls remain a strategic pressure point

China imposed export controls on several specialty rare earths in April 2025 in retaliation for Trump’s “Liberation Day” tariffs. While both countries struck a deal in October last year aimed at easing trade restrictions, exports of key rare earth materials have remained tightly controlled.

Beijing has maintained especially strict curbs on specialty rare earths such as yttrium and scandium, both critical for aerospace components, advanced electronics and military technologies.

The White House factsheet also said China would address American concerns over export restrictions on rare earth processing equipment and related technologies.

China refines more than 90 per cent of the world’s rare earth supply and has spent decades building dominance across mining, refining and processing operations. Much of its expertise and proprietary technology remains inaccessible to foreign firms.

The concentration of global supply chains in China has increasingly alarmed Western governments seeking to reduce dependence on Beijing for critical minerals essential to defence and high-tech manufacturing.

Broader trade agreements announced

Alongside the rare earth discussions, the White House said China had agreed to purchase
at least $17 billion worth of American agricultural products annually through 2028.

Washington also said China would resume imports of US beef and poultry and
purchase 200 Boeing aircraft.

Beijing confirmed a broader aircraft purchase agreement but did not specify numbers. Chinese officials instead focused on plans to deepen trade cooperation and reduce tariffs.

Both countries said they would establish new boards on trade and investment to facilitate bilateral economic discussions.

The Trump-Xi summit concluded on Friday, with both leaders agreeing to hold another meeting in the United States in September.