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The United States and China have finalized a trade agreement restoring U.S. access to Chinese rare earth minerals, marking a breakthrough after months of strained negotiations. The deal, signed this week, codifies terms initially agreed upon in Geneva in May but delayed over disagreements about implementation.

On Friday, China's Ministry of Commerce said it would approve rare earth export applications that meet legal and regulatory conditions. In exchange, the U.S. will lift certain export restrictions imposed in May, including measures targeting chip software, jet engines, ethane, and Chinese student visas. These countermeasures were originally a response to China's delays in lifting its own export curbs.

Commerce Secretary Howard Lutnick stated that China would now deliver rare earths and, once that happens, the U.S. will take down its countermeasures. He also noted that the administration plans to finalize up to 10 additional trade agreements before a July 9 deadline to reinstate paused tariffs.

Rare earths are critical to industries ranging from clean energy to defense. China controls roughly 90% of global rare earth processing, making the materials a strategic vulnerability for Washington. Under new rules introduced by Beijing in April, Chinese exporters must obtain shipment-specific licenses and verify end-use details.

While Chinese officials say they are expediting approvals, analysts caution that dual-use restrictions may still block shipments to U.S. military contractors, and warn that unless licenses begin flowing quickly, the deal could unravel.

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