The United States and China are discussing a possible extension of their truce regarding Chinese restrictions on rare earth exports, as supply disruptions continue to affect the global industry.
According to Reuters, the issue is expected to be addressed at the summit between Donald Trump and Xi Jinping this week.
Despite these discussions, Chinese customs data shows that Beijing maintains strict controls on several strategic rare earths used in aerospace, defense, semiconductors and electric vehicles.
Chinese exports of heavy rare earths such as yttrium, dysprosium and terbium remain about 50% below their pre-restriction levels in April 2025.
These materials are essential for many high-tech industries, including the manufacture of powerful magnets found in electronics and electric cars.
The countries most affected by these restrictions would be the United States, Germany and Japan, while the alternative supply outside of China remains limited.
China largely dominates global production and refining of many rare earths, which strengthens its influence in trade and technology tensions with Washington.
According to Reuters, the shortages caused by these restrictions have led to a sharp rise in global prices and highlighted the dependence of Western industries on Chinese supply chains.
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