China keeps hold on rare earth metals after lifting some U.S. export curbs
- Export restrictions for 28 American companies on dual-use items are on hold for 90 days, according to China’s Commerce Ministry.
- China also paused non-tariff measures on 17 U.S. entities on the unreliable entity list.
- Export curbs on seven key rare earth elements were not lifted.
But China is continuing to block exports from that country of seven rare earth metals to the United States, whose defense, energy and automotive industries rely on those metals.
According to the Geneva trade statement, China has agreed to “adopt all necessary administrative measures to suspend or remove the non-tariff countermeasures taken against the United States since April 2, 2025.”
One of those countermeasures is the rare earths export curbs.
On April 4, China announced a package of retaliatory measures against President Donald Trump’s “liberation day” tariffs, including placing the export restrictions on seven rare earth metals: Samarium, gadolinium, terbium, dysprosium, lutetium, scandium and yttrium.
It is unclear why the rare earths controls were not included when the Chinese Commerce Ministry announced easing of other nontariff countermeasures from April.
On Wednesday, China removed 28 American companies from its export control list for dual-use items for 90 days. It also took 17 companies off its “unreliable entity list” including 11 for 90 days.
On the same day, the Commerce Ministry issued a statement on China’s efforts to clampdown on smuggling of rare earths and the need for broader government control of the metals for national security.
“All departments agree that comprehensive control of strategic minerals is essential,” it reads.
The vast majority of the rare earth elements, or REEs, imported to the United States come from China. They are viewed by Beijing as an effective leverage point in its trade negotiations with Washington.
A social media account linked to the national broadcaster CCTV has been hinting of their importance around the trade talks.
“With U.S. defense industries now ‘strangled by rare earth shortages’, what changes might occur in American weapons and equipment?” Yuyuantantian posted last Friday.
