Beijing announced on Thursday that it will suspend export controls on rare earth minerals and related technologies for one year, marking a dramatic de-escalation in trade tensions after a high-profile meeting between President Donald Trump and President Xi Jinping. The decision, effective immediately, halts restrictions imposed earlier this month that had disrupted global supply chains for critical materials used in electronics, defense, and green energy industries.

China’s Ministry of Commerce said the suspension aims to “safeguard and implement the important consensus” reached by the two leaders. The ministry confirmed that export controls announced on October 9 will remain paused for a year while Beijing reviews and refines its long-term policy framework. China holds a near-monopoly on rare earth extraction, processing, and magnet production, making it crucial to sectors in the US, European Union, and India that rely heavily on these materials.

The previous controls had frozen exports of mining, smelting, and recycling technologies tied to rare earth production, tightening supply at a time of rising global demand. The measures were initially introduced in retaliation for impending US tariff hikes tied to the expiration of an interim trade pact. Their sudden suspension signals a broader thaw in what had become a tense phase of the US-China trade relationship.

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Following the meeting, President Trump described his conversation with Xi as “amazing,” noting that both leaders agreed to reopen economic channels on multiple fronts. In what analysts call a “mini détente,” the US will reportedly halve fentanyl-related tariffs and refrain from imposing a planned 100 percent tariff hike next month. Trump also confirmed that China agreed to resume large-scale soybean imports from American farmers.

According to China’s state-run Xinhua News Agency, President Xi emphasized that “dialogue is better than confrontation” and pushed for renewed cooperation in areas such as energy, artificial intelligence, and environmental sustainability. Economic observers are calling the suspension of rare earth restrictions a major confidence-building step that could ripple through global manufacturing and technology markets, offering both nations—and the world—a brief reprieve from escalating trade tensions.

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