China to end rare earth controls, probes against chip companies

BEIJING: China will suspend additional export controls on rare earth metals and end investigations into US firms in the semiconductor supply chain, the White House said Saturday, outlining details of a trade pact reached earlier this week by President Donald Trump and Chinese leader Xi Jinping.

Under the deal, China will issue general export licenses for rare earths, gallium, germanium, antimony and graphite - effectively lifting curbs imposed in April 2025 and October 2022.

In return, Washington will extend a pause on some of Trump's reciprocal tariffs on Chinese goods for another year and halt plans for a 100% tariff on Chinese exports that had been slated for November.

The agreement followed the first face-to-face meeting between Trump and Xi in the US president's second term, helping stabilize relations after months of escalating trade tensions that rattled global markets.

China also agreed to suspend broad restrictions on rare-earth magnets in exchange for the US scaling back an expansion of curbs on Chinese companies.

Beijing had used its dominance in rare-earth processing as leverage, threatening to limit supplies to the US and allied nations.

The US will halve a fentanyl-related tariff to 10% from 20%, while China will resume purchases of American soybeans and other farm goods. Beijing pledged to buy 12 million metric tons of soybeans this season and at least 25 million tons annually over the next three years.