China Suspends Rare Earth Export Controls: What 1-Year Deal Means for US

The development came after US President Donald Trump and his Chinese counterpart Xi Jinping agreed to ease trade tensions between the world's two largest economies.

Earlier on October 9, Beijing announced further controls on the export of rare-earth technologies and items, adding to existing regulations on the critical industry.

The export restrictions were a reaction to US tariffs that were about to take effect following the expiration of an interim trade agreement.

However, for a year, the restrictions will be lifted while the Chinese government reviews and improves certain plans.

Earlier, in a significant development, the US President said that he and Xi Jinping have agreed on a one-year deal for the supply of crucial rare earth materials.

The announcement followed the two leaders' first face-to-face encounter in six years, which took place on the fringes of the 32nd APEC Economic Leaders' Meeting in Busan, South Korea.

According to Trump, the agreement, which will be renewed yearly, marks a substantial improvement in the tense trade relationship between the two nations.

“All the rare earths have been settled, and that’s for the world,” Trump told reporters aboard Air Force One after the meeting.

He added that he had also agreed to reduce fentanyl-related tariffs on China from 20 per cent to 10 per cent, describing the meeting with Xi as “a 12 out of 10.”

Trump said, “A lot of things we brought to finalisation,” and praised the Chinese President as “a tremendous leader of a mighty country.”

Clearing the air on his China visit, Trump revealed that he will visit China in April, while Xi is expected to travel to the US later.

- IANS