Special: China Rare Earth Restrictions of October 9 Implementation Suspended for One Year
Rare Earth 30 October 2024 #186
Spokesperson for the Ministry of Commerce Answers Questions from Reporters on the Joint Arrangements for the China-US Kuala Lumpur Trade Consultations
Xinhua News Agency, Beijing, October 30 – A spokesperson for the Ministry of Commerce answered questions from reporters on the joint arrangements for the China-US Kuala Lumpur trade consultations.
Question: It is understood that China and the US reached a joint arrangement in the Kuala Lumpur trade consultations to resolve their respective concerns regarding trade and economic issues. Could the Ministry of Commerce provide more details on the consensus reached in the Kuala Lumpur trade consultations?
Answer: The heads of state of China and the US just met in Busan, South Korea, and discussed in depth issues such as China-US trade relations, agreeing to strengthen cooperation in trade and economic fields. China is willing to work with the US to jointly safeguard and implement the important consensus reached at the meeting between the two heads of state.
The main achievements and consensus reached by the China-US trade teams through the Kuala Lumpur consultations are as follows:
I. The US will cancel the 10% so-called “fentanyl tariff” imposed on Chinese goods (including goods from the Hong Kong Special Administrative Region and the Macao Special Administrative Region), and the 24% retaliatory tariff imposed on Chinese goods (including goods from the Hong Kong Special Administrative Region and the Macao Special Administrative Region) will remain suspended for another year. China will adjust its countermeasures against the aforementioned US tariffs accordingly. Both sides agreed to extend some tariff exclusion measures.
Second, the US will suspend its 50% penetration rule on export controls announced on September 29 for one year. China will suspend its related export control measures announced on October 9 for one year and will study and refine specific plans.
Third, the US will suspend its Section 301 investigations against China’s maritime, logistics, and shipbuilding industries for one year. Following the US suspension of these measures, China will also suspend its countermeasures against the US for one year.
Furthermore, both sides reached consensus on issues such as fentanyl control cooperation, expanding agricultural trade, and handling individual cases involving relevant companies. Both sides further affirmed the results of the Madrid trade consultations, with the US making positive commitments in areas such as investment. China will work with the US to properly resolve issues related to TikTok.
The positive results achieved in the China-US Kuala Lumpur trade consultations fully demonstrate that both sides, adhering to the principles of equality, respect, and mutual benefit, can find solutions to problems through dialogue and cooperation. The results of the trade negotiations were hard-won, and China looks forward to working with the United States to implement them and inject more certainty and stability into China-US trade cooperation and the world economy.
That means, the dual-use license restrictions on 7 rare earths of 4 April 2025 remain in place.
The restrictions of 4 April 2025 apply to the really relevant rare earths for defense:
Scandium
Samarium
Gadolinium
Lutetium
Yttrium
Dysprosium
Terbium
Regarding an analysis of Lynas’ announcement of producing heavy rare earths from the “SEGH” Lynas currently ships to China together with its NdPr oxide, please look forward to our coming issue.
We will bring you the pesky details, as ever.