The Elements of Innovation Discovered
The Elements of Innovation Discovered
Metal Tech News - June 27, 2025
China's Commerce Ministry is optimistic that the rare earths breakthrough is the first step of healthy, stable, and sustainable China-U.S. economic and trade relations.
U.S. Secretary of Commerce indicates that he wants to see ships loaded with rare earths and other critical minerals bound for the U.S. before lifting restrictions on exports to China
In a potential breakthrough for U.S. manufacturers and tech firms, Beijing has agreed to resume exports of rare earths and other critical materials, marking the first tangible step toward restoring trade ties with Washington.
During a Thursday White House event, President Donald Trump confirmed the accord, saying, "We just signed with China."
While Trump did not provide further details on the deal, both his cabinet and officials in Beijing indicated that exports of rare earths essential for automotive and high-tech manufacturing to the U.S. are a major part of the accord.
In return, the U.S. is expected to lift retaliatory curbs on the exports of computer chips, ethane, and jet engines to China.
As a gesture of goodwill, the U.S. Department of Commerce has already approved shipments of ethane to China. However, energy traders have been prohibited from offloading this petroleum product used to make plastics, refrigerants, and other products in China until authorized by the department.
U.S. Secretary of Commerce indicates that he wants to see ships loaded with rare earths and other critical minerals bound for the U.S. before lifting restrictions on exports to China
U.S. Commerce Secretary Howard Lutnick has indicated that he wants to see ships loaded with rare earths and other critical minerals bound for the U.S. before offloading the ethane.
"They're going to deliver rare earths to us," and, once that is done, "we'll take down our countermeasures," he said during a Thursday interview with Bloomberg News.
Beijing sent a similar signal on Friday from China's perspective.
"China will approve the export application of controlled items that meet the conditions in accordance with the law," China's Ministry of Commerce stated. "The United States will cancel a series of restrictive measures taken against China accordingly."
The ships of ethane bound for China and the lifting of bans on exporting rare earths to the U.S. appear to be the first steps of implementing a temporary trade war truce brokered earlier this month in London, pending approvals by Trump and Chinese President Xi Jinping.
With the apparent trade deal approval, China's Commerce Ministry expressed optimism that the economic superpowers can "continuously enhance consensus, reduce misunderstandings, strengthen cooperation, and jointly promote the healthy, stable, and sustainable development of China-U.S. economic and trade relations."
With more than 17 years of covering mining, Shane is renowned for his insights and in-depth analysis of mining, mineral exploration, and technology metals.
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