Fact Check: "On June 11, 2025, U.S. and Chinese negotiators reached an agreement for Beijing to resume regular exports of rare earths to the U.S."
What We Know
On June 11, 2025, U.S. President Donald Trump announced that a deal had been reached with China regarding the supply of rare earth elements and magnets. According to reports, this agreement allows China to resume exports of these critical materials to U.S. companies, which had been restricted due to trade tensions and export controls imposed by China earlier in the year (source-1, source-3). The Chinese commerce ministry confirmed that it had approved "a certain number" of export permits for rare earth elements (source-2).
The deal was described as a framework that still required final approval from both Trump and Chinese President Xi Jinping (source-3). The negotiations were part of broader discussions aimed at easing trade tensions between the two nations, which had escalated significantly over the preceding months (source-4).
Analysis
The announcement of the agreement has been met with cautious optimism. While the U.S. government has indicated that the deal includes the resumption of rare earth exports, the specifics of the agreement remain unclear. The approval of export permits by China does not guarantee a steady supply, as the Chinese government has maintained that export controls are necessary for national security reasons (source-2).
Experts have noted that even with this agreement, supply cutoffs could still pose a significant threat to U.S. industries reliant on these materials. Gabriel Wildau, a managing director at Teneo, pointed out that China's licensing regime for rare earth exports is likely to remain stringent, limiting the quantities available to U.S. companies and ensuring that China's leverage in the market is not diminished (source-2).
Additionally, the announcement's timing and the lack of detailed terms raise questions about the deal's robustness. The agreement may be more of a temporary measure rather than a comprehensive solution to the ongoing trade disputes (source-4).
Conclusion
Needs Research: While there is an announcement regarding an agreement for China to resume rare earth exports to the U.S., the details are vague, and the potential for future supply disruptions remains high. The agreement appears to be a framework rather than a finalized deal, requiring further clarification and approval. Given the complexities involved and the ongoing trade tensions, more research is necessary to determine the actual implications of this agreement on U.S.-China trade relations and the availability of rare earth elements.
