### Trump Announces Renewed Flow of Rare Earth Materials from China Amid Fresh Trade Talks

US President Donald Trump has stated that Chinese leader Xi Jinping has agreed to restart the flow of crucial rare earth materials. This announcement comes ahead of a new round of US-China trade talks scheduled for Monday in London. Trump made these remarks following a phone call with Xi, during which both leaders agreed to resume negotiations that had stalled due to mutual accusations of violating a previously reached truce in Geneva.

The issue of rare earth mineral exports has been a significant sticking point for Washington. These materials are essential for a range of industries, from automotive to defense. In recent weeks, the US has accused China of delaying approvals for rare earth exports, contradicting a promise made during the Geneva talks. Trump had stressed the urgency of resolving this matter with his Chinese counterpart.

After a detailed 90-minute phone call, Trump said that he and Xi had "straightened out" several complex issues related to rare earth magnets but did not specify the exact agreements reached. When asked whether Xi had agreed to restart the flow, Trump confirmed, "Yes, he did," without elaborating on the timeline or volume of materials to be released.

Interestingly, the Chinese readout of the call did not mention rare earths. It quoted Xi as stressing that China had "seriously and earnestly" complied with the trade truce agreement. When questioned at a briefing, a Chinese foreign ministry spokesperson sidestepped the issue, saying it was a matter for other agencies to address.

China controls 90% of the global processing of rare earths and had imposed export restrictions on certain minerals and magnets on April 4 amid the tariff war. These restrictions require government approval for each shipment rather than banning exports outright. Chinese experts suggest that while some shipments to American businesses may be expedited in the coming weeks, the licensing regime is expected to remain in place.

Applications for export licenses can take up to 45 working days to be approved, according to rules set by China's Commerce Ministry. Wu Xinbo of Fudan University noted that the speed of these approvals could depend on the overall US-China trade relationship. Although some Chinese suppliers have recently received six-month export licenses, uncertainty remains due to a significant backlog of applications.

Experts like Jin Canrong from Renmin University believe that Trump's focus on rare earths shows the effectiveness of China's leverage through these materials. Jin suggested that China could use this leverage to address US export controls on advanced technologies, such as semiconductors.

In anticipation of further negotiations, there is hope among some Chinese scholars that US technology restrictions may now be on the negotiating table. Commerce Secretary Howard Lutnick, responsible for overseeing US export controls, will join the next round of talks along with Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer.

While Beijing insists its export controls comply with international practices and are non-discriminatory, the strict licensing system has disrupted global supplies, affecting industries in America and Europe. A survey by the American Chamber of Commerce in China found that 75% of companies affected by the controls would run out of stock within three months.

European Union Trade Commissioner Maros Sefcovic has also discussed the issue with Chinese Commerce Minister Wang Wentao. In response to EU concerns, Wang pledged to establish a "green channel" to expedite approvals for eligible applications, aiming to address disruptions in industries like the European car sector.