Temporary Suspension of Export Bans on Rare Earths, Goods, and Technologies
for 28 U.S. Companies
On May 15, the Chinese government announced that it would suspend for 90 days its export restrictions to the United States on rare earth resources that can be used for military purposes, as well as other goods and technologies. This measure is part of the U.S.-China trade agreement reached in Switzerland on May 12.
According to Bloomberg News, the Chinese Ministry of Commerce stated on the same day, "Exporters of rare earths and other materials that can be used exclusively for military purposes may apply for export permits for a period of 90 days starting today."
On April 4, China blocked exports of seven types of rare earths to 16 U.S. companies. Then, on April 9, an additional 12 U.S. companies were added to the sanctions list. However, under the new agreement, China has decided to suspend export restrictions for 90 days on all 28 U.S. companies that were subject to these sanctions.
The Chinese Ministry of Commerce also announced in a separate statement on the same day that it would suspend trade and investment bans that had been imposed on 17 U.S. companies.
This measure follows the two countries' agreement to temporarily reduce tariffs that had been imposed on each other. As of 12:01 p.m. on May 14 (12:01 a.m. U.S. Eastern Time on May 14), China suspended the application of 91 percentage points out of the previous additional tariff rate of 125% on U.S. goods, and decided to temporarily halt the implementation of 24 percentage points out of the remaining 34 percentage points for 90 days.
U.S. President Donald Trump, speaking to reporters at the White House on May 12 immediately after the U.S.-China trade agreement, assessed that the agreement marked a "complete reset" of the trade relationship between the two countries, with China agreeing to open its market. He stated, "The best part of this deal is that China has agreed to open its market to U.S. companies," and added, "China has agreed to suspend and eliminate non-monetary (non-tariff) trade barriers." It was reported that the suspension of China's rare earth export controls to the United States would be included in the agreement.
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