China has temporarily suspended its ban on the export of rare earth elements and other dual-use items to 28 US companies, reported Bloomberg.
This move is part of a broader trade détente with the US, marking a potential easing of tensions between the two economies.
China’s Ministry of Commerce announced a 90-day suspension of restrictions that were initially set out on 4 April and 9 April, targeting exports of dual-use goods to specific US entities.
China added 16 US entities to its export control list on 4 April, which was expanded to 12 more companies on 9 April.
The export controls were placed on certain medium and heavy rare earths including dysprosium, gadolinium, lutetium, samarium, scandium, terbium and yttrium, which are crucial for various industries including defence and technology.
Although the ministry’s latest statement did not specify the commodities, it is understood that seven categories of rare earths, previously identified as dual-use, are now open for licensed export.
The suspension aligns with the recent bilateral agreement between China and the US to temporarily reduce tariffs on each other’s products.
This first major step back from the prolonged trade conflict was hailed by US President Donald Trump as a “total reset” of the countries’ relationship.
The 90-day pause allows exporters of goods with potential military applications to seek export licences from the Ministry of Commerce.
In a related move, the Ministry of Commerce is also lifting a trade and investment ban on 17 US companies, further signalling a thaw in the trade war that has impacted global economic stability.
