China Temporarily Suspends Key Rare-Earth and Critical Mineral Export Controls

China Pauses Export Restrictions Amid Trade Truce

Beijing has announced a temporary suspension of several newly implemented export controls on rare-earth elements and critical minerals, signaling a de-escalation of trade tensions. The move, which offers a one-year reprieve for global supply chains, follows a high-stakes meeting between Chinese President Xi Jinping and U.S. President Donald Trump in Busan, South Korea, in late October 2025.

The suspension, effective from early November 2025, will last until November 10, 2026, for some measures, and until November 27, 2026, for others. This decision is part of a broader trade truce that also saw the U.S. agree to reduce tariffs on Chinese imports and delay new technology sanctions, including a one-year suspension of the 'Affiliates Rule' under its Export Administration Regulations.

Details of the Suspended Controls

The temporary pause specifically targets several directives issued on October 9, 2025, by China's Ministry of Commerce (MOFCOM). These directives (Announcements 55-58, 61, and 62) would have significantly tightened export licensing requirements for a range of materials, including:

• Rare-earth elements
• Magnet materials
• Lithium-battery inputs
• Super-hard materials

Additionally, Article 2 of Announcement No. 46 (2024), which imposed enhanced U.S.-focused licensing requirements for dual-use items such as gallium, germanium, antimony, graphite, and other super-hard materials, has also been suspended. Notably, an extraterritorial licensing obligation (Announcement 61) that would have required approval for foreign-made products incorporating Chinese-origin rare-earth materials or technologies has been put on hold. The export controls on five additional rare earth elements—holmium, erbium, thulium, europium, and ytterbium—announced on October 9, 2025, are also included in this suspension.

However, not all restrictions have been lifted. The first clause of Announcement No. 46 of 2024, which prohibits the export of dual-use items for U.S. military users or military end-uses, remains in effect. Furthermore, export licensing requirements for seven heavy rare earth elements and permanent magnet materials, which were implemented on April 4, 2025, also continue to apply.

Context and Geopolitical Implications

The original export controls, introduced in two waves in April and October 2025, were largely seen as a response to U.S. tariffs and technology restrictions, with Beijing citing national security interests. China, a dominant player in the global rare-earth market, controls approximately 60% of global mining output and 91% of separation and refining stages for rare earths. This strategic leverage has been a significant factor in ongoing trade disputes.

The temporary suspension is widely interpreted as a tactical pause by China, aimed at easing immediate market pressures while preserving its long-term leverage over critical mineral supply chains. Analysts suggest that while the move provides a much-needed breathing room, it does not dismantle China's emerging export-control architecture.

Industry Impact and Future Outlook

Industries globally that are heavily reliant on these materials, particularly in sectors such as electronics, defense, and renewable energy, will experience a temporary reprieve. This period allows companies to reassess their sourcing strategies and potentially diversify their supply chains. The suspension is expected to calm prices for materials like neodymium, dysprosium, and graphite anodes.

Despite the immediate relief, experts caution that the structural dependency on China for these critical minerals remains largely unchanged. The temporary nature of the suspension means that companies must remain vigilant and prepare for the possibility that these controls could be reinstated or modified once broader geopolitical calculations evolve.