Following the June 5, 2025, phone call between U.S. President Donald Trump and Chinese President Xi Jinping, there has been no indication that China plans to lift its export restrictions on rare earth elements. In fact, recent developments suggest that China is reinforcing its control over these critical resources.
On June 4, 2025, China implemented a national tracking system for its rare earth magnet industry. This system mandates producers to submit detailed online reports, including trading volumes and client identities. This move follows China’s April 2025 imposition of export restrictions on several medium to heavy rare earth elements and magnets, requiring exporters to obtain licenses. The delays in licensing have disrupted global supply chains, particularly affecting automakers and semiconductor companies, with some auto production lines halted due to depleted reserves .
During the recent call, President Trump and President Xi agreed to resume trade negotiations, with a focus on trade issues, including rare earth elements. However, no specific commitments were made regarding the easing of rare earth export restrictions .
Given these developments, it appears that China is unlikely to eliminate its rare earth export restrictions in the near future.
