FX.co ★ China Rolls Back Rare Earth Export Ban in Trade War Truce with U.S.

China has lifted export restrictions on rare earth elements and military-use technologies for 28 U.S. entities, just two days following a significant U.S.-China agreement aimed at temporarily reducing tariffs. The Geneva Agreement, sealed on May 12, introduces a 90-day moratorium and a reduction of 115 percentage points in mutual tariffs, marking the first substantial step towards easing the ongoing trade conflict. China's Ministry of Commerce has verified that this suspension will take effect on Wednesday, granting exporters the opportunity to seek licenses to resume shipments within the 90-day period. This move comes after a period of escalated tensions where the U.S. implemented tariffs reaching as high as 245%, prompting China's counter-response of rare earth export bans, impacting 28 U.S. firms. These critical materials, essential for the production of semiconductors, electric vehicles, and military technology, include samarium, gadolinium, and dysprosium. Moreover, in another gesture signaling improved relations, China has temporarily lifted trade and investment bans on 17 U.S. companies, describing these recent developments as a potential reset in bilateral relations.