China eases export limits for 28 US firms; rare earths restricted
China has temporarily lifted export restrictions for 28 American companies after reaching a trade agreement with the United States. However, key restrictions on the export of seven rare earth metals remain in place.
The decision to temporarily lift these export restrictions comes from a trade agreement reached with the Trump administration in Switzerland. Nonetheless, as reported by CNBC, essential restrictions on the export of seven rare earth metals, such as samarium and gadolinium, still apply.
According to a statement from Geneva, China agreed to suspend or remove certain non-tariff measures imposed against the United States starting April 2, 2025. However, restrictions on rare earth metals, which are crucial for the American defence and energy industries, have not been lifted.
On Wednesday, China removed 28 American companies from the export control list for 90 days.
On the same day, the Chinese Ministry of Commerce issued a statement on the fight against the smuggling of rare earth metals and the need to control them for national security reasons.
leverage on the American economy
China has key resources and technology that can effectively impact the American economy. Most of the rare earth metals imported into the United States come from China, giving Beijing an advantage in trade negotiations with Washington.
As stated in the Critical Raw Materials Alliance (CRMA) report, China is responsible for 80 percent of the global production of gallium and 60 percent of germanium.
The potential gap between the United States and China is substantial. According to statistics from early January, China possesses 44 million tonnes of extractable rare earth metals. Vietnam follows with 22 million tonnes, and Brazil with 21 million tonnes. The United States has access to 1.8 million tonnes.
