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China has announced a one-year suspension of export restrictions on several important minerals and technologies that serve both civilian and military uses. The move follows high-level talks between Chinese President Xi Jinping and U.S. President Donald Trump and may signal a deeper trade truce taking hold between the world’s two largest economies.

Background & Scope of the Roll-Back
On 9 October 2025, China’s Ministry of Commerce declared that it would pause restrictions imposed earlier on exports of key rare earth elements, lithium-battery materials and advanced processing technologies. These curbs were initially justified on national-security grounds and reached into dual-use materials used in semiconductors, defence hardware and high-tech manufacturing.
In addition, export bans introduced in December 2024 on gallium, germanium, antimony and “super-hard” materials such as synthetic diamonds and boron nitride have now been suspended for the coming year. Analysts note that China’s dominance in refining such critical minerals (for example >90% of global refined gallium output in recent years) gives it substantial leverage.
By lifting—or at least pausing—these restrictions, Beijing is sending a signal of de-escalation in the trade conflict, which has rippled through tech supply-chains globally.

Why It Matters: High-Tech Supply Chains and Strategic Minerals
These minerals are far more than commodities. Gallium and germanium feed into advanced radar, infrared sensors, fibre-optics and semiconductor systems, while antimony is used in flame-retardants, ammunition primers and energy-storage. Lithium battery materials underpin electric vehicles and grid-storage systems.
According to recent industry estimates, China accounted for nearly 60% of global refined germanium production and virtually all (99%) of refined gallium output. Disruption of these flows is seen as a potential “$3.4 billion hit” to the U.S. economy if supply remains constrained.
For the United States and its high-tech and defence sectors, ensuring reliable access to these materials is a strategic priority. For China, the ability to restrict or resume exports gives it a powerful bargaining chip.

What the Agreement Entails
Under the new agreement:

• China will grant general export licences for rare-earths, gallium, germanium, antimony and key graphite supplies destined for U.S. end-users and their global supply-chains.
• The one-year suspension covers multiple categories of dual-use goods and technologies, including processing equipment for rare-earth magnets and battery cathodes.
• The truce also includes U.S. commitments: Washington has agreed to reduce tariffs on certain Chinese imports by 10 percentage-points, and to suspend its reciprocal tariff escalation until at least November 2026.
• Importantly, China will also ease end-use and end-user verification requirements for U.S. bound shipments of dual-use graphite, introduced as part of the December 2024 restrictions.

Implications for Global Trade & Industry
Short-term relief: Manufacturers dependent on Chinese-sourced critical materials will have a clearer pathway for supply-chain planning, easing cost pressures and inventory risks.
Geopolitical signalling: The move underscores a willingness on both sides to stabilise trade ties—and offers a glimpse of what a deeper restructuring of supply chains might look like.
Continuing caution: Despite the step forward, industry watchers caution that China’s leverage remains significant and future disruptions remain possible if political winds shift.
Competitive response: Affected industries in the U.S., Europe and elsewhere may still accelerate efforts to diversify away from Chinese supply, ramp up domestic mining/processing and build alternative sourcing networks.

Looking Ahead
In the coming months stakeholders will watch for:

• Whether China honours the one-year suspension in full, or re-imposes curbs ahead of the 2026 expiry.
• How quickly companies move to reset supply-chain contracts and whether any bottlenecks of processing capacity remain.
• Additional trade rounds between Washington and Beijing, and whether deeper structural reforms to trade or technology access are negotiated.
• Movements in global prices and availability of these critical minerals—if the suspension holds, it may dampen recent price spikes.

The suspension of export restrictions by China represents a tangible step toward thawing trade tensions and restoring critical supply-chains in high-tech and defence industries. While the meaning remains the same — China relaxing curbs and the U.S. gaining breathing room in access to minerals — the tone has shifted from confrontation toward recalibration. For industries, governments and investors, the implications are material: supply-chain risk falls, but vigilance remains essential.