China signals readiness on rare earth talks, approves more exports

Beijing says it is ‘willing to enhance communication’ on strategic minerals, which have taken centre stage in US-China trade negotiations

China has approved some qualified rare earth export applications and is ready to deepen dialogue with nations over export controls, as the strategic resource continues to take centre stage in Beijing’s trade negotiations with Washington.

In a statement posted on its official website on Saturday, the Chinese Ministry of Commerce said: “We have observed growing global demand for medium and heavy rare earths in civilian sectors such as robotics and new energy vehicles, as these industries continue to expand.”

It added that, as “a responsible major power”, China had taken the legitimate civilian needs of other countries into account, approved qualified export applications in line with the law, and would continue strengthening its compliance review process.

“China is willing to enhance communication and dialogue with relevant countries on export controls in order to facilitate compliant trade,” the statement read.

Rare earths – a long-held bargaining chip for China in its dealings with the United States – are at the heart of the trade tug of war between the rival powers.
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China’s rare earth export controls are expected to be among the top items on the agenda when Vice-Premier He Lifeng meets US trade and Treasury officials in London this week, a month after he led the Chinese side in negotiations held in Geneva in May.

According to a social media post on Friday by US President Donald Trump, Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer will be part of the US delegation.
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The Chinese foreign ministry announced on Saturday that Vice-Premier He would be in Britain from Sunday to Friday at the invitation of the British government, and would take part in the China-US economic and trade consultation mechanism.

In a separate statement on Saturday, the commerce ministry said China was willing to speed up the examination and approval of rare earth exports to European companies. The statement followed a meeting between Chinese Commerce Minister Wang Wentao and European Union trade chief Maros Sefcovic on the sidelines of a World Trade Organization event in Paris on last week.

China is the world’s largest producer of rare earths, and accounts for around 70 per cent of global rare earth mining and around 90 per cent of the refining of these minerals. The minerals are essential for making consumer electronics, electric vehicles and hi-tech defence systems.

China has granted temporary export licences to rare earth suppliers serving the top three US carmakers, with at least some valid for six months, according to a Reuters report on Friday citing unidentified sources familiar with the matter.

In a separate report, Reuters also said Trump confirmed on Friday that Chinese President Xi Jinping had “agreed to let rare earth minerals and magnet flow” to the US, in comments following a long-awaited call between the two leaders the previous day.

“Still, global access to [rare earth elements] will remain more restricted than it had been, pushing other countries to invest in alternative sources of supply,” she added.

After the high-level US-China talks in Geneva on May 10 and 11, Beijing was widely expected to remove export controls on seven critical minerals that were imposed on April 4 amid the tit-for-tat tariff war with Washington. The curbs require all exporters to apply for a permit before shipping the minerals overseas.

But China has yet to confirm whether it will lift the restrictions, and Washington has accused it of failing to fulfil the commitment it made in Geneva.