China approves some rare-earth exports as it gears up for talks with US tomorrow

China on Saturday approved some export license applications for rare earth-related metals — critical components used in manufacturing of automobiles, semiconductors, mobile phones and a host of other industries.

The approval was granted considering rising global demand for medium and heavy rare earth elements driven by industries such as robotics and new energy vehicles, a spokesperson of the Ministry of Commerce here said.

Rare earth-related items have dual-use attributes for both military and civilian purposes, the spokesperson said, noting that imposing export controls on such items is in line with international practice.

The spokesperson said the controls aim to better safeguard national security and interests and fulfil international obligations of non-proliferation, which reflects China’s commitment to “world peace and regional stability”.

China will continue to strengthen the review of compliant applications and is ready to enhance communication and dialogue on export controls with relevant countries to facilitate compliant trade, the spokesperson said.

The announcement was regarded as significant as the US, EU and India have been urging China to lift the restrictions amid growing concerns from industries facing shortages of these critical metals.

The shortages were so acute that Japan’s Suzuki has stopped production of its Swift model, according to reports from Tokyo.

It is not clear whether the approvals are applicable to India too.

The removal of restrictions was one of the prime issues that figured in Thursday’s telephone talks between US President Donald Trump and his Chinese counterpart Xi Jinping.

India, too, has taken up the lifting of the restriction with China, following growing concerns among automobile manufacturers about the scarcity of rare earth magnets, which are critical components in electric vehicles (EVs) and even some parts of traditional internal combustion engine vehicles.

Three of US President Donald Trump’s top aides will meet with their Chinese counterparts in London on Monday for talks aimed at resolving a trade dispute between the world's two largest economies that has kept global markets on edge.

US Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer will represent the United States in the talks, Trump announced in a post on his Truth Social platform without providing further details.

China’s foreign ministry said on Saturday that vice premier He Lifeng will be in the United Kingdom between June 8 and June 13, adding that the first meeting of the China-US economic and trade consultation mechanism would be held during this visit. “The meeting should go very well,” Trump wrote.

Geneva truce doesn’t address key issues

The temporary Geneva understanding struck last month did not address broader concerns that strain the bilateral relationship, from the illicit fentanyl trade to the status of democratically governed Taiwan and US complaints about China's state-dominated, export-driven economic model. China sees mineral exports as a source of leverage. Halting these could amp up political pressure on the US.