China, U.S. Haven’t Agreed Yet on Rare Earths Deal

The US and China are still negotiating key details of how Beijing will free up sales of rare earths, according to a person familiar with the talks, weeks after a trade truce that Washington said would pave the way for increased exports was announced, Jenny Leonard reported for Bloomberg News.

While Washington has already rolled back tariffs and paused several national-security measures as part of the agreement, China has yet to comment publicly on the licensing pledge. (Photo: Xinhua / ZUMA / REA)

The two sides have given their teams until the end of November to agree on terms for “general licenses” that China pledged to issue for US-bound exports of rare earths and other critical minerals, said the person, who declined to give a reason for the delay.

The White House listed the commitment in its account of the deal reached between President Donald Trump and Chinese President Xi Jinping two weeks ago, characterizing it as the “de facto removal” of various curbs imposed since 2023 and touting it as a major win for the global economy and supply chains.

While Washington has already rolled back tariffs and paused several national-security measures as part of the agreement, China has yet to comment publicly on the licensing pledge.

Beijing has confirmed other parts of the truce, including a one-year pause on additional rare-earth controls announced only weeks before the South Korea talks.

“The deal is far from done,” said Alicia Garcia Herrero, chief Asia-Pacific economist at Natixis.

“China can use licenses as leverage and decide to grant or withdraw them and exert pressure any time.”

The uncertainty has left rare-earth exporters in limbo. Several said they are still awaiting fresh guidance and have yet to see changes in ground-level practices, Lucille Liu, Jing Li, Winnie Zhu and Martin Ritchie also reported for Bloomberg.