The Chinese Ministry of Commerce announced that the export restrictions, originally declared on October 9, will now take effect on November 10, 2026. The decision was made as part of an agreement reached during the October 30 meeting in Busan, South Korea, between U.S. President Donald Trump and Chinese President Xi Jinping.
Comprehensive Restrictions Suspended
In the regulations released in October, the ministry had imposed export controls on rare earth elements, as well as on their mining, processing, recycling, and related production technologies.
It was also announced that technical transfers involving the assembly, maintenance, repair, and upgrading of these technologies would require export licenses.
With the new decision, these measures have been suspended for at least one year.
Under the restrictions, foreign companies exporting rare earth elements produced in China were to be required to obtain licenses from the Ministry of Commerce to export items with potential civilian or military applications.
The ministry had also added new items to its list of critical minerals, including certain materials used in lithium-ion battery production and superhard metal processing, announcing that these would also be subject to export restrictions.
U.S.–China Trade “Ceasefire”
At the Trump–Xi summit, the two countries agreed to ease rising trade and technological tensions.
As part of this understanding, the United States postponed the enforcement of new rules affecting partnerships with foreign companies on the sanctions list for one year.
In return, China agreed to delay its export controls on rare earth elements.
China Accounts for 69% of Global Supply
China holds about 69% of global supply and 85% of processing capacity for rare earth elements, which consist of 17 different metal oxides.
These elements are vital for high-tech industries such as electric vehicles, smartphones, space technologies, and defense systems.
In recent years, Beijing has continued to use control mechanisms in this sector as a geo-economic tool, responding to U.S. export restrictions on the semiconductor and advanced technology sectors.
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