The US and China have agreed to accelerate rare earth shipments to the US in a move aimed at easing trade tensions and stabilizing global supply chains disrupted by months of tariff retaliation between the two economic powers.
The announcement follows US President Donald Trump's remarks earlier this week that a deal had been signed with China and that further agreements, potentially involving India, could follow.
During trade talks in Geneva in May, China committed to rolling back certain non-tariff measures imposed since April, though how those would be reversed remained unclear.
As part of its response to US tariffs, Beijing had suspended exports of critical minerals and rare earth magnets, straining supply chains across sectors such as automotive, aerospace, and defense. Under the latest understanding, China will resume shipments in exchange for the US lifting certain countermeasures, Commerce Secretary Howard Lutnick said.
While China’s Commerce Ministry confirmed recent progress on implementing the Geneva trade consensus, it did not directly mention rare earths. Chinese authorities have continued to vet export licenses to prevent materials from reaching US military applications, industry sources said.
Wedbush analysts said the deal could have a meaningful impact on specific materials and suppliers. “We would anticipate that Indium is one of the materials which could see more expedited granting of export licenses,” Wedbush wrote in a note Friday. “Assuming Beijing expedites licenses, we believe it is very likely AXT could enjoy a sharp rebound in InP shipments positioning it to exceed current expectations for the out quarters.”
Earlier this month, some Chinese suppliers were granted temporary export licenses to ship rare earths to major US automakers.
Trump also indicated that Beijing’s cooperation on mineral exports could be tied to broader diplomatic efforts, including allowing Chinese students to study in American universities.