US and China strike major trade deal on rare earth minerals

In recent trade negotiations, the United States and China reached an agreement concerning the export of rare earth minerals, which are crucial for high-tech industries. This significant development, confirmed by China’s Commerce Ministry, follows discussions in London on June 9 and 10, 2025. Both sides acknowledged the need to address escalating tensions over access to these essential materials, previously hindered by export restrictions imposed by China. The deal was a part of broader efforts to stabilize trade relations and followed a series of earlier negotiations that laid the groundwork for easing tariffs and restrictions. The signing of this agreement comes after President Donald Trump announced that both nations had formalized a trade deal during a press conference earlier this week. Commerce Secretary Howard Lutnick highlighted the importance of the deal in easing tensions that had escalated over the past few months, particularly in light of China's control over the global rare earth supply chain. The recent agreement allows China to approve export applications for controlled items subject to U.S. demands, while the U.S. will lift several restrictions it had previously imposed against China. China's strategy to expedite the approval of rare earth mineral exports is aimed at alleviating concerns among U.S. industries reliant on these materials, which range from electronics to defense systems. The recent agreement is seen as a welcome shift in trade policy, aimed at revitalizing economic interaction between the two superpowers, who have been in a trade war since early 2025. Analysts point out that the effective lifting of export restrictions is key to restoring balance between the two economies, which have been struggling under the impact of heightened tariffs and trade barriers. Moving forward, officials from both sides expressed optimism about further collaboration, with expectations for more negotiations on other trade issues. The drive towards resolving the trade impasse represents a significant moment for both nations, who understand the mutual economic benefits of maintaining a strong and cooperative trade relationship. The deal is viewed as a stepping stone towards a more stable economic future between the United States and China, especially as other nations, such as India, look on closely, understanding the implications of this agreement on global trade dynamics.