China US trade: China has temporarily suspended the ban imposed on the export of some dual-use items to America. These include gallium, germanium, antimony and super-hard materials. China’s Commerce Ministry gave this information on Sunday (November 9, 2025). The ministry said that this suspension will be effective from today till November 27, 2026. The ministry did not share any further details in this regard. In December 2024, China had announced a ban on the export of these materials.

Relief on other export controls also
China also announced the suspension of other export controls on Friday, including restrictions imposed on some rare earth elements and lithium battery materials. This step is being linked to the agreement between President Xi Jinping and US President Donald Trump. The two leaders had earlier agreed to postpone tariff cuts and other trade measures for a year. After six years, US President Donald Trump and Chinese President Xi Jinping talked for about 1 hour 40 minutes.

Told Xi Jinping as a great leader
Trump praised Xi Jinping and said that he is a great leader of a great country and he feels that they will have a great relationship for a long time. At the same time, Xi Jinping said that he was very happy to meet Trump after many years. The two leaders last met in 2019, when Trump was in his first term. This is Trump’s first meeting with Xi Jinping in his second term.

China bans export restrictions
Earlier on Friday, China had announced that it was stopping the export restrictions imposed on October 9, in which the strictness on some rare metals and items related to lithium batteries was increased. This decision is part of the process of withdrawing the restrictions imposed earlier on a wide scale. Earlier, Xi Jinping and Donald Trump had agreed that for the next one year, both the countries would reduce tariffs and avoid new trade steps. Its purpose is to prevent trade tensions from escalating further while negotiations continue.

What is the importance of these metals?
Gallium and germanium are used in semiconductors, fiber optics, solar panels and defense systems. According to the Center for Strategic and International Studies (CSIS), China’s dominance in the production of these metals is so great that about 98 percent of the primary gallium used in the world comes from China. After China’s export ban, American companies had to find new suppliers in Europe and South-East Asia.

US Finance Minister Scott Besant has said that the export restrictions imposed by China on rare minerals have proved to be a ‘mistake’ for it. These steps made the world realize how Beijing can use these important resources to exert pressure.

Controversy increases over export control
In October, China had implemented new rules on the export of technologies related to rare metals. This thing is considered very important for defence, automobile, consumer electronics and many industries. Due to these sanctions, tension had increased in trade negotiations between America and China. However, following President Xi Jinping and Donald Trump’s meeting on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in South Korea this week, China announced it would suspend some export restrictions for a year.

‘China has made the world realize the danger’- Besant
Speaking to the Financial Times, Besant said, ‘China has alerted everyone about the danger. He has really made a mistake. According to him, ‘Showing weapons is one thing, but firing bullets in the air is another matter.’

movement in the global market
Control over rare metals had increased volatility in markets around the world and affected supply chains. This area is considered a major means for China to create international influence. Besant says that now it will not be easy for China to take a similar step again, because many countries including America have ‘prepared options’ against it. He said, ‘China’s leadership team was a little nervous about the global reaction.’

China’s President took America to task
Xi Jinping took on Trump on Friday at the ongoing APEC summit in South Korea. He told leaders of the Asia-Pacific region that his country would help defend global free trade at the annual economic regional forum, which US President Donald Trump ignored.

Rare Earth Elements: Whenever China is angry with any country, it stops or limits the supply of rare earths (REEs) there. Recently, China has also tightened the rules regarding export of rare earths. Under this, China has made licensing mandatory for the export of seven rare earths and finished magnets. Besides, an order has also been issued not to use them in the defense sector. Due to this decision of China, it has come into conflict with America.

What is rare earth?

Rare earth is actually a group of 17 minerals. They are used in making hi-tech products in various industries. From making smartphones to electric vehicles, radar systems, missiles, drones and even generating clean energy, they are used. These minerals, which seem very simple in appearance, are very effective in their effects.

The reserves of rare earth minerals in the whole world are about 130 million tonnes. Of these, China alone has the maximum of 44 million tonnes. Whereas, if we talk about India, it has reserves of about 6.9 million tonnes of rare earth, which is about 5 percent of the world’s total reserves. Although there is no dearth of rare earths in nature, but it is very difficult to extract them because they are found in mixed form, like many times these radioactive elements are found stuck with uranium.

Why is China dominant?

China extracts 3.48 lakh tonnes of rare earth minerals, which is about 70 percent of the global production. Whereas 90 percent of its processing work is also done in China. This is because China has such technology which can easily separate rare earths. In such a situation, rare earths extracted from other countries are also sent to China for processing.

In this way, China continues to dominate the world over rare earths. However, according to the IEA (International Energy Agency) report, by 2030, China’s share in rare earth mining is expected to decline from 69 percent to 51 percent and in refining from 90 percent to 76 percent. This trend reflects a broader international effort to diversify and balance the supply chain.

These minerals are found in rare earth

Cerium, neodymium, lanthanum, yttrium, scandium, praseodymium, samarium, gadolinium, dysprosium, erbium, europium, thulium, terbium, lutetium, promethium, holmium, ytterbium.

Efforts continue to end dependence on China

The amount of rare earth that India currently possesses is less than 1 percent at the global level. There are huge possibilities for the future in states like Kerala, Tamil Nadu, Odisha, Andhra Pradesh and Gujarat. The government is continuously promoting the detection, excavation and processing of rare earths in the country’s soil.

In this connection, the government had started the National Critical Chemical Mission in 2025. In the coming time, India can also import rare earths from countries like America and Australia. Demand for rare earths may increase by 300-700 percent by 2040. Preparations for this need to start now. Meanwhile, another good news is that government company IREL (India) Limited was removed from the US export control list. This is a big step, which opens doors for international cooperation for India.

Apart from this, IREL is also going to open a new facility in Visakhapatnam, where samarium-cobalt magnets will be produced. This will further help India in becoming self-reliant in technology. This magnet is very important for high-tech defense equipment.

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US seeks help from India: America has been continuously messing with India for some time now. Sometimes tariffs are being imposed, and sometimes penalties are being imposed for purchasing oil from Russia. Now when China pressed America’s sore spot, America was forced to ask for help from India. In fact, recently China announced further tightening of restrictions on the export of rare earth elements.

These are included in the list of rare earth export control

Earlier in April, China had banned the export of seven rare earths. Now five more rare earths have been included in this list, which include Holmium, Erbium, Thulium, Europium and Ytterbium. The earlier seven rare earths included samarium, gadolinium, terbium, dysprosium, lutetium, scandium and yttrium.

America angry with China’s stance

Now it is obvious that this will affect all the countries of the world including America because these rare earths are used in everything from making smartphones to electric vehicles and wind turbines. America’s dependence on China for rare earths is very high. America imports up to 70 percent rare earth from China. This attitude of China has troubled America. First, in retaliation to this, 100 percent tariff was imposed on Chinese products and now US Finance Minister Scott Besant has sought help from India in this matter.

America asked for help from India

In an interview to CNBC, Besant said, “We will talk with our European allies, Australia, Canada, India and Asian countries and together we will react against this move of China.” He says that this step of China is not only a matter of trouble for America.

He says that everyone should work together to ensure that the supply of rare earths remains intact in all the countries around the world. India has already joined America’s efforts to diversify its supply chain. In the year 2023, India formally became a part of the Minerals Security Finance Network (MSFN). This is a US-led initiative, which aims to increase cooperation among members to secure the supply chain of rare earths.

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The tariff policy of US President Donald Trump not only affected the worldwide business, but has also improved the relations between India and China standing on two different poles in Asia. Meanwhile, the relationship that was spoiled after the Galwan struggle, was started by Chinese President Xi Jinping. For this, he also sent a secret letter to President Draupadi Murmu, in which the desire was expressed to improve India-China relations.

From June 2025, backchanle communication between India and China started. In this, the two countries discussed the issues related to long stuck issues, especially the Galwan Valley Conflict. During the visit of China’s Foreign Minister Wang Yi to India in August, the two countries agreed to resolve border disputes and increase trade cooperation. China has assured India’s concerns, especially about the import of fertilizer, rare metals and tunling machines.

The world’s eyes on Modi-Jinping meeting

Prime Minister Narendra Modi and Xi Jinping will meet during the meeting of the Shanghai Cooperation Organization (SCO) on 31 August. This is going on Modi’s visit to China after seven years. Earlier, PM Modi last visited China in 2019. Possible issues are expected to be discussed between the two leaders, which is as follows:

• Concrete steps on reducing border disputes.
• Increasing business partnership and investment.
• To ensure regional stability and peace.

Trump’s tariff bites in relations with America!

The US has imposed 25% additional tariffs on India, which has increased tension in relations between the two countries. Many American analysts and Republican leaders have also criticized the decision. In such an environment, increasing the partnership between India and China is considered beneficial for the economic interests of both countries.

Trump has imposed strong tariff on China

India and China together can reduce tariff barriers. The arrival of the two countries together will promote investment and development in Asia. Apart from this, dependence on America will decrease and India-China will be able to work on their common interests.

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