(MENAFN) China has agreed to suspend its latest rare earth export controls for one year in exchange for reciprocal US tariff cuts and eased export restrictions, according to a statement from the Chinese Commerce Ministry on Thursday. The agreement followed a series of high-level meetings, including a face-to-face session between Chinese President Xi Jinping and US President Donald Trump in South Korea, alongside economic and trade delegation talks in Kuala Lumpur.

The rare earth restrictions, which affect minerals with dual-use applications in both civilian and military technologies, had been seen as Beijing’s response to US curbs on advanced semiconductors and chipmaking equipment introduced since late 2022. These measures culminated in the Dutch government’s seizure of the Chinese-owned chipmaker NeXperia in September under US pressure. China dominates the extraction and processing of rare earth minerals, essential for modern technology ranging from smartphones to missiles.

Under the new deal, the US will suspend its recent rule expanding export restrictions to any business at least 50% owned by entities on its “entity list.” It will also pause investigations into China’s maritime, logistics, and shipbuilding industries and lower tariffs related to fentanyl and other targeted goods. China, in turn, will adjust its retaliatory measures and resume purchases of US soybeans and other agricultural products that had been paused during recent trade tensions.

While the deal provides temporary relief on several fronts, older trade restrictions between the two countries remain in place. President Trump described the talks as a “great meeting” with Xi, emphasizing progress toward stabilizing bilateral trade relations.

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