Trade thaw in China: Beijing suspends export restrictions on rare earths for a year after talks between Xi and Trump, signaling easing of tariff and technology tensions – The Times of India

China said on Thursday it will suspend certain export restrictions for a year, including those related to rare earths, previously announced in October, signaling a temporary easing of trade tensions with the United States, AFP reported.According to Beijing’s Commerce Ministry, the decision to “suspend the implementation of relevant export control measures… for one year and study and refine specific plans” followed trade talks in Malaysia this week and on the same day as talks between Chinese President Xi Jinping and US President Donald Trump in South Korea.China, the world’s largest producer of rare earth minerals used in magnets crucial for electric vehicles, electronics and defense industries, had on October 9 announced new controls on rare earth exports – a sensitive sector that has long been a flashpoint in the economic rivalry between Beijing and Washington.The new rules required exporters to seek approval for technologies related to mining, smelting and processing of rare earth metals, as well as “assembly, adjustment, maintenance, repair and modernization of production lines,” the Commerce Department said.Rare earths remain a major sticking point in trade negotiations between the two sides, with Washington accusing Beijing of deliberately delaying the approval of export licenses.As part of the reciprocal measures, the United States agreed to suspend for one year Entity List export restrictions on subsidiaries of blacklisted foreign companies in which it owns at least a 50% stake, the ministry said.The US also agreed to cut tariffs on certain Chinese goods, including cutting a fentanyl-related tax to 10%, while Beijing said it would adjust its countermeasures accordingly.In another move, Washington will suspend for a year its Section 301 investigation into China’s shipbuilding industry, which had led to both countries imposing port fees on each other’s ships. China will in turn freeze its “countermeasures” against US ships for the same duration, AFP reported.China’s Commerce Ministry added that both leaders had “reached a consensus on cooperation in controlling fentanyl trafficking (and) expanding agricultural trade,” although no further details were provided.After the meeting, Trump told reporters that China would immediately begin purchasing “tremendous quantities” of U.S. soybeans and other agricultural products.Beijing also said the two sides would take action to resolve issues surrounding Chinese social media app TikTok, whose US operations Washington has sought to separate from parent company ByteDance over national security concerns, AFP added.