China has agreed to suspend the “second phase” of its export controls on rare earth metals for at least one year, officials familiar with the talks said, as part of a temporary trade truce reached with the United States in late October 2025.
The move follows high-level discussions between Chinese President Xi Jinping and U.S. President Donald Trump, who met this week amid mounting tensions over technology and critical mineral supply chains.
The “second phase” of China’s export measures, announced on October 9, 2025, would have expanded restrictions from seven to twelve rare earth elements and introduced the Foreign Direct Product Rule (FDPR) — requiring foreign companies that use Chinese materials or equipment to obtain Beijing’s approval before exporting related products.
By agreeing to pause only the second phase, China will maintain its existing “first phase” controls, which already limit exports of several key rare earth elements vital for semiconductors, electric vehicles, and defense applications.
Under the temporary arrangement:
The first phase of controls, covering the original seven elements, remains in force.
The second phase, including the expanded list and the FDPR requirement, is suspended for at least one year.
Analysts say the pause provides short-term relief for global manufacturers dependent on Chinese rare earths but leaves longer-term uncertainties unresolved. Details of the broader trade understanding between Washington and Beijing are expected to emerge in the coming weeks.
Aleksei Andrievskii is the founder of the ANDRIEVSKII SEA WEALTH family office in Cyprus, a member of the advisory board at Bendura Bank AG, Liechtenstein