Beijing Expected to Expedite Rare Earth Export Permits for U.S. Firms Following Trade Truce

Key Highlights:

• U.S. buyers may soon secure rare earth export licenses faster amid easing tensions
• China unlikely to scrap export controls entirely, maintaining strategic leverage
• Licenses that typically take 45 days could be fast-tracked for U.S. clients
• Critical sectors like defense, EVs, and chipmaking remain vulnerable to policy shifts
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U.S. companies reliant on rare earth minerals may finally see some regulatory relief after Monday’s temporary U.S.-China trade truce, with Beijing expected to expedite export permit approvals for American customers, according to sources familiar with China’s strategic materials policy.

Two industry insiders told Reuters that the Ministry of Commerce in China may begin fast-tracking applications from U.S.-linked clients, particularly in light of diplomatic efforts to de-escalate the tariff dispute. While a full rollback of export controls remains off the table, the thaw in bilateral relations could unlock a supply lifeline for sectors ranging from defense to electric vehicles and AI robotics.

“We are expecting to see an acceleration in the issuance of the required export license, and exporters with clients in the U.S. might get a license soon,” said one source, speaking under anonymity due to the sensitive nature of rare earth policymaking in China.

China, which controls nearly 70% of the global supply chain for rare earth elements, imposed additional restrictions in April, requiring licenses for the export of seven key rare earths and related products. These controls, introduced as part of a broader countermeasure to U.S. tariffs, were seen as a powerful geopolitical lever.

The policy applied to all countries, but U.S.-based buyers were particularly impacted due to the ongoing trade war. Tesla CEO Elon Musk recently disclosed negotiations with Beijing to secure rare earth access for the company’s Optimus robotics project, underscoring how vital the minerals have become across high-tech verticals.

Despite the latest détente, analysts say China is unlikely to relinquish its grip on the sector. “Export controls give Beijing leverage over strategic industries where it dominates,” one of the sources explained. “They’re here to stay, but the enforcement will likely become more pragmatic—at least for now.”

For the U.S., which remains heavily dependent on Chinese rare earth imports, this development offers a temporary reprieve—but also a stark reminder of its vulnerability to mineral geopolitics.