According to the White House fact sheet, Beijing will halt the global implementation of its October export restrictions on rare earths and related minerals, and issue general export licences for rare earths, gallium, germanium, graphite, and antimony.
These materials are essential for chipmaking, battery production, and a wide range of industrial components used in trucks, cars, and renewable technologies. The controls had intensified the semiconductor supply crisis after China’s October export ban and the Dutch government’s intervention on Nexperia earlier this year.
China also confirmed that it would allow trade to resume from Nexperia’s facilities in China, restoring exports of so-called “legacy chips” used in the automotive sector. The decision is expected to stabilise supply for European vehicle manufacturers that had warned of potential production shutdowns in recent weeks.
A U.S.–China accord with global effects
The agreement, reached by U.S. President Donald Trump and Chinese President Xi Jinping in Seoul, covers a broad range of measures including the suspension of Chinese retaliatory tariffs, the reopening of agricultural markets, and commitments to stem the flow of fentanyl precursors to the United States.
In exchange, Washington will roll back part of its tariff increases on Chinese imports and delay the implementation of additional trade restrictions for one year.
While the deal is framed as a U.S.–China accord, the easing of mineral export controls is likely to have wider consequences for international trade. The suspension of export controls is likely to facilitate the resumption of international trade in high-value industrial materials, easing recent supply bottlenecks.
Europe remains on the sidelines
Despite the potential global benefits, the European Union was not a party to the negotiations. This leaves the bloc reliant on indirect effects of the U.S.–China deal and without guarantees that access to Chinese raw materials will remain stable.
Still, the European Commission has cautiously welcomed Beijing’s decision to suspend its expanded export controls on rare earths and other critical minerals. A Commission spokesperson described the move as “an appropriate and responsible step” that could help stabilise global trade flows, according to the South China Morning Post.
At the same time, EU officials have underlined that Europe remains heavily dependent on Chinese materials and will continue pursuing its diversification strategy under the Critical Raw Materials Act.
European Commission President Ursula von der Leyen recently said that China’s tightening of export controls “has a huge impact on us here in the European Union,” adding that the bloc will focus on “joint purchasing, stockpiling, and investment in strategic projects for the production and processing of critical raw materials here in the EU”.
She emphasised that Europe’s goal is to “secure access to alternative sources of critical raw materials in the short, medium and long term for our industries.”
While the suspension of export controls may ease immediate supply pressures, EU leaders have signalled that Europe will continue to prioritise securing independent access to critical materials and reducing its strategic vulnerabilities.
