After months of tension, the United States and China have finalized a trade framework to restore the flow of rare earth minerals to the US market. This agreement, confirmed by both governments, is designed to ease the supply chain crisis that had emerged when China restricted exports of key materials like gallium, germanium, and antimony. These minerals are essential components in manufacturing semiconductors, electric vehicles, and defense equipment.
The deal includes China’s commitment to speed up export approvals and the US agreeing to roll back some tariffs and trade barriers. The move comes after intense negotiations in Geneva and London, aiming to reduce the economic strain caused by the previous export bans. The US Commerce Secretary described the agreement as “signed and sealed,” signaling a major step toward stabilizing critical supply chains.
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While China will initially issue six-month export licenses, which some experts see as a temporary measure, the agreement is expected to relieve pressure on American industries that depend heavily on these rare earth elements. This development is a positive sign for the global economy, as it helps prevent a potential $34 billion loss in US GDP over the next decade.
