The U.S. and China have lifted a series of mutual export restrictions, delivering on promises made under a trade framework agreement signed last month in London. The move is seen as a step toward de-escalating a long-running trade conflict, though concerns remain about the durability of the truce.

Rare Earths and High-Tech Goods Back in Motion

China’s Commerce Ministry confirmed it is again approving export licenses for “eligible controlled ”items”—widely understood to refer to rare earth elements, which are vital to military and civilian technologies. China had imposed curbs on 11 rare earths since December.

In turn, the U.S. has lifted restrictions on exports of:

• Aircraft engines
• Semiconductor design software
• Ethane, a petrochemical feedstock

Market Reactions and Strategic Implications

Reuters and CNN reported that shipments resumed this week, offering relief to industries reliant on cross-border tech and energy trade. The U.S. defense sector, in particular, depends on Chinese-supplied rare earths for munitions, night vision equipment, and precision weapons.

But officials warned that future flare-ups could undo the progress. The U.S. is still years away from developing self-sufficient rare earth sources, leaving it exposed to geopolitical risk.

From Tariffs to Talks

The easing follows a sharp escalation earlier this year, when both sides imposed tariffs exceeding 100%. Since then, the Trump administration scaled U.S. duties back to 55%, and China reduced its import levies to 10%.

However, non-tariff barriers — including licensing curbs, embargoes, and dual-use tech controls — remain a sticking point.

What’s Next?

Negotiators are now working toward a broader trade agreement that may include binding limits on export restrictions. But analysts remain skeptical that Beijing will relinquish its strategic edge in rare earths anytime soon.