Beijing pauses rare‑earth export controls after Trump–Xi trade truce; Washington readies tariff and 301 suspensions
In a late‑Friday move with immediate supply‑chain implications, China’s Ministry of Commerce (MOFCOM) formally suspended a package of rare‑earths and battery‑materials export controls for roughly one year, aligning with a U.S.–China de‑escalation framework announced after President Donald Trump’s Nov. 1 meeting with President Xi Jinping in Busan. The U.S., for its part, is preparing near‑term steps to ease select tariff and regulatory measures by Nov. 10 as part of the same understanding. [1]
- China’s MOFCOM suspends six export‑control notices covering rare earths, superhard materials, lithium battery inputs, and related technologies from Nov. 7, 2025, through Nov. 10, 2026. [2]
- The White House fact sheet outlines reciprocal U.S. steps: trimming “fentanyl‑linked” tariff layers by 10 percentage points and pausing certain China actions for one year starting Nov. 10, 2025. [3]
- USTR opened a public comment docket Nov. 6 on suspending the “Ships/Maritime” Section 301 action for one year, targeting a Nov. 10 effective date. [4]
What changed on Nov. 7—and why it matters
MOFCOM’s Announcement No. 70 (2025) pauses the implementation of earlier notices—Nos. 55, 56, 57, 58 (jointly with China’s customs authority) and Nos. 61, 62—effective immediately until Nov. 10, 2026. Those measures, unveiled in October, expanded controls to additional medium and heavy rare‑earth elements, magnet materials, lithium‑battery inputs, and certain extraterritorial applications. The suspension averts a Nov. 8 compliance cliff for exporters and downstream manufacturers worldwide. [5]
Chinese state‑linked and international outlets quickly framed the move as a pause consistent with the Busan understanding, noting the one‑year window and the breadth of items affected. While not a wholesale repeal, the suspension materially reduces near‑term licensing friction for rare‑earths, graphite and battery‑material supply chains. [6]
- Nov. 1, 2025: White House releases fact sheet on the Trump–Xi economic/trade deal. [7]
- Nov. 6, 2025: USTR opens comments to suspend the “Ships/Maritime” Section 301 action for one year, starting Nov. 10. [8]
- Nov. 7, 2025: MOFCOM suspends rare‑earths and related export controls until Nov. 10, 2026. [9]
- Nov. 10, 2025: U.S. timeline for implementing parts of the Busan package (tariff and regulatory adjustments). [10]
Inside the Busan package: what each side committed to
| United States | China |
|---|---|
| Lower cumulative tariffs on China by removing 10 percentage points tied to fentanyl‑related measures, effective Nov. 10; extend certain Section 301 exclusions; suspend for one year the “affiliate” rule and actions under the ships/maritime 301 case (subject to process). [11] | Suspend implementation of October rare‑earths/battery export‑control notices and selected non‑tariff countermeasures; study “general license” approaches and refine control plans; pause certain retaliatory tariffs, per U.S. fact sheet and Chinese media readouts. [12] |
What is still unconfirmed
Independent analysts note that while Beijing’s suspension notice is clear, some U.S.‑claimed Chinese commitments—such as the scope and speed of any “general licenses” or the status of actions affecting specific firms—have not been fully detailed in official Chinese readouts. That creates execution risk as both sides move toward the Nov. 10 operational date. [13]
How the suspension reshapes the near‑term supply‑chain risk
Industry briefings indicate that the now‑paused rules would have newly captured additional REEs (including holmium) in magnet supply chains, raising licensing hurdles and forcing recipe changes in NdFeB magnets; companies had already begun to redesign away from heavy rare‑earth content. The suspension buys time for OEMs and Tier 1s, but it does not eliminate dependence on Chinese processing capacity. [14]
Magnets and motors
Holmium‑bearing grades for high‑temperature magnets were slated for new licensing—now paused—prompting substitution efforts. [15]
Defense and EV impact
Rare‑earth magnet controls would have intersected with defense, aerospace, and EV traction motors; pause lowers immediate compliance risk. [16]
Policy linkage
U.S. tariff relief and regulatory pauses arrive in tandem, including a proposed one‑year suspension of the ships/maritime 301 action to enable talks. [17]
Politics at home: Congress’s crosscurrents on tariff authority
Even as the administration touts the Busan framework, a bipartisan Senate push has pressed to curtail the use of “global tariffs” via emergency powers, reflecting broader unease about executive unilateralism in trade policy. The Senate Finance Committee’s Democratic ranking member Ron Wyden and Republicans like Rand Paul have sought to reassert congressional authority—an effort that culminated in a late‑October Senate vote urging repeal of blanket tariff measures and now awaits House action. [18]
Rhetoric and signaling: Anti‑Communism Week and China policy
On Nov. 7, the White House issued a proclamation marking “Anti‑Communism Week,” underscoring an ideological frame that the administration continues to apply to trade and national‑security debates. The messaging runs parallel to tactical de‑escalation steps with Beijing, highlighting a dual‑track approach: sharper rhetoric at home, pragmatic pauses abroad. [19]
What to watch between now and Nov. 10
- Federal notices and agency implementation: Look for formal follow‑through on tariff exclusion extensions and regulatory pauses referenced in the White House fact sheet, as well as USTR’s next steps after the Nov. 7 comment deadline. [20]
- Chinese licensing practice: Whether MOFCOM issues “general licenses” (or equivalent facilitation measures) and how quickly export approvals flow will determine real‑world relief. [21]
- Scope clarity: Independent analysis warns that not all U.S.‑claimed Chinese concessions have appeared in Chinese primary sources; watch for additional MOFCOM notices. [22]
“China will suspend the global implementation of the expansive new export controls on rare earths and related measures that it announced on October 9, 2025.” — White House fact sheet on the Trump–Xi deal. [23]
“Effective immediately until November 10, 2026… [the] Announcements Nos. 55, 56, 57, 58 and MOFCOM Announcements Nos. 61, 62 are suspended.” — MOFCOM Announcement No. 70 (2025). [24]
Short‑term verdict
Supply‑chain stress eases heading into year‑end; risk migrates from rules on paper to pace and predictability of licensing in practice. 📊 [25]
Medium‑term politics
Expect continued congressional scrutiny of executive tariff authorities, regardless of tactical detente with Beijing. ⚖️ [26]
Strategic trajectory
Both sides are testing a managed competition model: selective de‑escalation (tariffs/controls) while retaining assertive rhetoric and fallback tools. 🌍 [27]
Bottom line for readers
China’s Nov. 7 suspension of rare‑earth and related export controls, paired with U.S. steps targeted for Nov. 10, meaningfully lowers immediate disruption risk in magnets, batteries, and defense‑adjacent supply chains. Yet key elements—especially Chinese licensing speed and U.S. agency execution—remain to be proven. Watch the Federal Register and MOFCOM’s notices next week for the true test of this truce. [28]
References
- MOFCOM & GAC Announcement No. 70 (2025) suspending prior export‑control notices (Nov. 7, 2025). [29]
- White House Fact Sheet on U.S.–China economic/trade deal (Nov. 1, 2025). [30]
- USTR press release opening comments to suspend “Ships/Maritime” Section 301 action (Nov. 6, 2025). [31]
- China Briefing analysis of Trump–Xi outcomes and implementation uncertainties (Nov. 4, 2025). [32]
- Global Times and Times of India reports corroborating China’s suspension scope/timing (Nov. 7–8, 2025). [33]
- ADAMS Magnetic technical note on holmium‑containing magnet grades (Oct. 21, 2025, updated Oct. 30). [34]
- Senate Finance Committee materials on curbing executive tariff powers (April–Oct. 2025). [35]
- White House proclamation: Anti‑Communism Week, 2025 (Nov. 7, 2025). [36]
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