China Temporarily Suspends Key Rare Earth Export Controls for One Year

China has temporarily suspended its recently expanded export controls on a range of critical rare earth elements and associated technologies for one year, effective from early November 2025 until November 10, 2026. This move follows a trade agreement reached with the United States, as reported by various sources. A social media post by Mario Nawfal, citing Reuters, indicated that a U.S.-China rare earths deal could "hopefully" be finalized by Thanksgiving, suggesting the conclusion of these negotiations.

The suspension, confirmed by outlets like China Briefing and Rare Earth Exchanges, is part of a broader agreement between the U.S. and China. This understanding reportedly includes the U.S. backing off certain tariffs and China committing to not restrict its supply of rare earths, which are vital for products ranging from smartphones to advanced defense systems. The arrangement aims to ease immediate market pressures and stabilize global supply chains.

China, which controls approximately 90% of global rare earth processing, had previously implemented and expanded export restrictions. Initial controls were introduced in April 2025, followed by a significant expansion in October 2025, which added five new rare earth elements and extended extraterritorial jurisdiction to products made using Chinese technologies abroad. These measures had prompted concerns across industries reliant on these critical materials.

Regarding potential restrictions on U.S. defense firms, the social media post by Mario Nawfal stated that "He dismissed reports that China may restrict rare earths to U.S. defense firms, framing it as speculation, not strategy." While China's export control policies do include provisions against military end-users, the current one-year suspension suggests a temporary de-escalation of immediate concerns.

This one-year window provides a crucial opportunity for Western nations to accelerate efforts in diversifying their rare earth supply chains. Analysts view China's decision as a tactical pause, allowing Beijing to maintain long-term leverage while offering a temporary reprieve to global manufacturers navigating a complex geopolitical landscape.