Presidents Trump and Xi met in South Korea last week and as a result a new trade agreement was agreed between the United States and China. Among the main agendas discussed was the export barrier of rare earth elements (REE) that China introduced to the global market in October. Now China has agreed to suspend this REE export barrier for a year.
Exports of rare earth elements such as gallium, germanium, antimony and graphite are now allowed again through the issuance of general licenses. The suspension of exports by China was done because REE have secondary functions for military purposes such as nuclear reactors and missiles. It is a response to the United States preventing the sale of advanced AI chips to China for the same reason.
In addition to suspending export barriers, China agreed to stop investigating US chip companies that are accused of monopolizing business and buying wheat whose purchases have been stopped since April. The United States has agreed to reduce the tariff rates on several Chinese products, including the 100% retaliatory tariff announced by Trump.
