Trump and Xi to discuss extension of rare earth truce
U.S. and Chinese leaders are meeting to discuss extending a rare earth export truce. Data shows shipments of critical defense materials still remain restricted.
United States and China leaders will meet this week to negotiate an extension of a rare earth export truce. The discussion follows April 2025 controls that slashed shipments of heavy rare earths by 50% compared to the prior year. For investors, the outcome determines the stability of global defense and semiconductor supply chains currently facing four-fold price spikes.
### Selective Licensing Masks Supply Chain Chokehold While headline export volumes have rebounded over the past year, Beijing maintains tight restrictions on specialty materials like yttrium, dysprosium, and terbium. These elements are critical for aerospace, defense, and electric vehicle magnets. Arthur D. Little senior principal Ilya Epikhin said China appears to be selectively licensing exports to preserve leverage over strategically sensitive supply chains.
