U.S.-China Tensions Over Rare Earth Exports: A Trade Balancing Act

Rare earth exports from China to the U.S. have improved, but China remains slow in approving some shipments, says U.S. Trade Representative Jamieson Greer. Despite an earlier agreement, China's export controls continue, impacting key industries. Greer highlights recent shipments of yttrium amid ongoing supply challenges.

Rare earth exports from China to the United States are showing signs of improvement, but obstacles remain, according to U.S. Trade Representative Jamieson Greer. In a Bloomberg Television interview, Greer highlighted that while some shipments are flowing more smoothly, delays persist in securing export licenses, requiring U.S. intervention.

Despite a deal struck in October last year, China's April 2025 export controls, imposed as a countermeasure to U.S. tariffs, still significantly restrict certain rare earth shipments. This continues to affect industries reliant on these materials, such as semiconductors and aerospace, causing ongoing tensions.

Recent supplies of yttrium, a rare earth element crucial for various sectors, have provided some relief. Greer emphasized a constructive dialogue with Chinese counterparts to mitigate shortages, though a substantial export deficit remains. The issue remains a focal point as trade negotiations between both nations proceed.