US-China Trade Deal: Easing Export Controls on Rare Earths and Semiconductors

US and China agreed to ease export controls on rare earth minerals and semiconductors, reduce tariffs, and improve trade stability after London negotiations.

- TDG NETWORK

In a significant development that could reshape global economic dynamics, the United States and China have successfully concluded a preliminary agreement aimed at easing stringent export restrictions on critical technologies and materials. This landmark accord, announced on June 11, 2025, comes after two days of intensive, high-stakes negotiations held in London.

The agreement is poised to inject much-needed stability into bilateral economic ties that have been increasingly strained by an escalating trade conflict, characterized by a tit-for-tat imposition of tariffs and export controls that threatened to disrupt global supply chains.

TRADE DISRUPTIONS

The trade conflict between the United States and China has been a defining feature of international relations over the past year, primarily fueled by disputes centered on export controls over essential materials and advanced technologies. The escalating tensions began when the U.S., citing national security concerns, implemented sweeping restrictions on the export of semiconductors and related manufacturing equipment to China. These measures were designed to curb China's technological advancement, particularly in areas deemed critical for future economic and military superiority.

China's reaction was swift and retaliatory, demonstrating its strategic leverage in the global supply chain. Beijing imposed stringent bans on the export of several key minerals, including gallium, germanium, and antimony. These minerals are indispensable for the production of a wide array of high-tech products, ranging from advanced semiconductors and crucial components for electric vehicles to sophisticated military equipment.

The disruption caused by these bans rippled through global industries, affecting manufacturers and consumers worldwide and raising profound concerns about the resilience and stability of international markets already grappling with post-pandemic vulnerabilities.