Daily on Energy: US-China rare earth truce extended

China has extended a waiver on some rare earth export controls for two months, through 10 January, easing immediate pressure on US-China trade ahead of expected meetings between Donald Trump and Xi Jinping. The extension offers industries more time, but analysts say it does not resolve supply-chain dependence or provide a lasting solution.

The truce began a year ago, when China paused restrictions on five additional rare earths in exchange for US tariff reductions. It did not cover controls introduced in April 2025 on seven types of rare earth metals and magnets, which require export licences: US imports from China averaged 19.3 metric tonnes per month in the 11 months after the truce, down nearly 75% from 76.8 tonnes before those restrictions. The article also says pauses on Chinese exports of gallium, germanium and antimony are due to run until 27 November, and cites an IEA estimate that full rare earth restrictions could put nearly $6.5 trillion in annual production outside China at risk.