The extension of the suspension of China’s rare-earth export controls will be a key issue at the U.S.-China summit. As the 10 November deadline approaches, China’s export permit delays continue, while deteriorating Japan-China relations are also affecting exports to Japan.
The extension of the “trade truce” over the suspension of China’s rare-earth export controls is a key issue ahead of the U.S.-China summit. The deadline is 10 November, but delays in China’s export permits have not been resolved, hampering negotiations. Exports to Japan have also continued to decline sharply amid deteriorating Japan-China relations. China has maintained its policy of using rare earths as a diplomatic bargaining chip.
The extension was reportedly deferred at ministerial-level U.S.-China talks on the 20th, with the two sides unable to agree on the duration. The U.S. called for a 6-month extension, while China sought to extend it through the end of the Trump administration’s term. Greer, the U.S. Trade Representative, said China’s export restrictions had created uncertainty.
Although China’s total rare-earth exports have been trending upward, supplies of key products and to specific countries have been restricted. Total exports in 2025 reached approximately 63,000 tonnes, the highest level in the past 10 years, but exports to the U.S. of permanent magnets essential for EVs fell by approximately 20% year on year. Exports to Japan also halved year on year in July.