China relaxes export curbs for 28 US firms, rare earths still tight
China has temporarily lifted export restrictions for 28 American companies following a trade agreement with the USA. However, key export restrictions on seven rare earth metals remain in effect.
China has temporarily eased export restrictions for 28 American companies as part of a trade agreement with the Trump administration. Nonetheless, as reported by CNBC, key export restrictions on seven rare earth metals, such as samarium and gadolinium, remain in place.
According to a statement from Geneva, China agreed to suspend or remove specific non-tariff measures imposed against the USA starting 2nd April 2025. However, the restrictions on rare earth metals, 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 stated that it was fighting the smuggling of rare earth metals and that its control was necessary for national security.
Leverage on the American economy
China possesses key resources and technology that can significantly impact the American economy. Most rare earth metals imported to the USA come from China, which gives Beijing an advantage in trade negotiations with Washington.
As stated in the Critical Raw Materials Alliance (CRMA) report, China is responsible for 80% of the world's gallium production and 60% of germanium.
The gap in potential between the USA and China is substantial. According to statistics from early January, China has 44 million metric tons (equivalent to around 43 million imperial tons) of extractable rare earth metals. Next are Vietnam with 24 million metric tons (approximately 24 million imperial tons) and Brazil with 23 million metric tons (about 23 million imperial tons). The United States has access to 2 million metric tons (roughly 2 million imperial tons).
