Beijing Puts Six-Month Limit On Rare Earth Exports To US In Case Trade Deal Collapses

"Finally some actual detail around what was actually agreed upon during yesterday's trade talks.

With questions swirling about the fate of Chinese rare earth exports to the US under the "framework", the WSJ reports that China is putting a six-month limit on rare-earth export licenses for U.S. automakers and manufacturers, giving Beijing leverage if trade tensions flare up again while adding to uncertainty for American industry.

The WSJ source noted that as China approves the applications, the US will start to drop its countermeasures, including export controls on the jet engines and ethane.

In other words, the US now has six months to create its own rare earths supply chain or else Beijing will be able to use this trump card during the next negotations.

Trump said Wednesday that the deal with China to restore the trade cease-fire was done, subject to final approval from himself and the Chinese leader. “FULL MAGNETS, AND ANY NECESSARY RARE EARTHS, WILL BE SUPPLIED, UP FRONT, BY CHINA,” Trump posted on his Truth Social platform, without giving additional details on the Chinese commitment."

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