China maintains control over critical minerals worldwide which serves as a key factor in its trade negotiations with the United States as both nations work toward establishing a delicate peace agreement.
The rare earth mines located in southern China around Ganzhou serve as the foundation of Beijing’s advantageous position. The essential minerals serve as fundamental components for defense systems and smartphones and green technology applications. The rising trade tensions led China to implement stricter export licensing procedures which resulted in worldwide supply chain disruptions.
President Trump announced on Wednesday that China would increase rare earth exports following his phone conversation with President Xi Jinping which led to progress in trade negotiations. The United States agreed to reduce its limitations on Chinese students and educational exchange programs as part of the deal.
The Chinese commerce ministry verified export license approvals while JL MAG Rare-Earth Co. announced it restarted deliveries to both U.S. and European markets. The extent and permanence of these export approvals remain uncertain.
Both economies need stability so critical minerals serve as both a trade bargaining tool and a measure of trust and trade dependability.
