China pauses rare earths exports curbs targeting US entities

[HONG KONG] China on Wednesday (May 14) suspended curbs on exports of rare earths and other goods and technologies for military use targeting 28 US entities as part of the trade detente struck between the world’s two largest economies.

The move follows an agreement by China and US to temporarily lower tariffs levied against each other’s products – the first major de-escalation in the trade row that was touted by US President Donald Trump as a “total reset” of bilateral ties.

Stocks and the US dollar surged as prospects of a resolution offered relief to investors.

The suspension of export controls took effect on Wednesday and will last for 90 days, China’s Ministry of Commerce said in a statement. China initially blocked exports of seven types of rare earths for 16 US entities on Apr 4, then added 12 additional entities on Apr 9.

Exporters of rare earth and other goods that can be used for military uses are allowed to apply for export licenses to the Ministry of Commerce now in 90 days, according to the statement.

The Ministry of Commerce is also suspending a trade and investment ban against 17 US companies, according to another ministry statement issued on Wednesday. BLOOMBERG