(USA, 12th) Chinese and American representatives recently met in London and announced a framework consensus but did not disclose details. US President Trump posted on his social platform Truth Social, stating that an agreement has been reached with China, with all magnets and necessary rare earth elements to be supplied in advance by China.
In the text, Trump stated: “All magnets and necessary rare earth elements will be supplied in advance by China. Likewise, we will provide China with what both parties have agreed on, including allowing Chinese students to use resources from our universities (I have always been very pleased with this!). We will collectively share 55% tariffs, and China will enjoy 10% tariffs.”
He further summarized: “The relations between both parties are very good! Thank you for your attention to this matter!”
Moreover, according to US media reports on the 11th, the Chinese government will implement a six-month restriction on export licenses for rare earths to US manufacturing and automobile manufacturers. Informed sources revealed that the US will not give up measures to prevent China from obtaining critical US technology, while China will continue to exert pressure.
Informed sources indicated that China's agreement to temporarily resume rare earth licensing was one of the key breakthroughs in the London negotiations, but the six-month limit suggests that both sides retain tools that could escalate the situation again. As a condition of China temporarily easing rare earth restrictions, the US agreed to relax recent restrictions on selling aircraft engines and related parts, as well as ethane, to China. Currently, Sino-US communications are formulating the framework details for maintaining the temporary Geneva agreement, with Chinese representatives indicating that Beijing wishes to maintain control over key minerals as future bargaining leverage.
During the meeting in London, China agreed to immediately begin approving US companies’ rare earth license applications, but they will need to wait for the two national leaders to sign the framework agreement, with approvals potentially being granted within a week after the formal signing of the Geneva agreement. After China approves the applications, the US will begin lifting countermeasures, including export controls on aircraft engines and ethane.
As part of the trade framework, Beijing is expected to immediately start issuing temporary rare earth licenses, mainly involving elements used in the manufacturing of electric vehicles, wind turbines, consumer electronics, and military equipment.
In the text, Trump stated: “All magnets and necessary rare earth elements will be supplied in advance by China. Likewise, we will provide China with what both parties have agreed on, including allowing Chinese students to use resources from our universities (I have always been very pleased with this!). We will collectively share 55% tariffs, and China will enjoy 10% tariffs.”
He further summarized: “The relations between both parties are very good! Thank you for your attention to this matter!”
Moreover, according to US media reports on the 11th, the Chinese government will implement a six-month restriction on export licenses for rare earths to US manufacturing and automobile manufacturers. Informed sources revealed that the US will not give up measures to prevent China from obtaining critical US technology, while China will continue to exert pressure.
Informed sources indicated that China's agreement to temporarily resume rare earth licensing was one of the key breakthroughs in the London negotiations, but the six-month limit suggests that both sides retain tools that could escalate the situation again. As a condition of China temporarily easing rare earth restrictions, the US agreed to relax recent restrictions on selling aircraft engines and related parts, as well as ethane, to China. Currently, Sino-US communications are formulating the framework details for maintaining the temporary Geneva agreement, with Chinese representatives indicating that Beijing wishes to maintain control over key minerals as future bargaining leverage.
During the meeting in London, China agreed to immediately begin approving US companies’ rare earth license applications, but they will need to wait for the two national leaders to sign the framework agreement, with approvals potentially being granted within a week after the formal signing of the Geneva agreement. After China approves the applications, the US will begin lifting countermeasures, including export controls on aircraft engines and ethane.
As part of the trade framework, Beijing is expected to immediately start issuing temporary rare earth licenses, mainly involving elements used in the manufacturing of electric vehicles, wind turbines, consumer electronics, and military equipment.