Archive · 17 Nov 2025
US-China Rare Earths Deal Poised for Thanksgiving Conclusion
The United States and China are close to finishing a deal about special materials called rare earths, which are super important for things like phones, electric cars, and clean energy.
U.S. Treasury Secretary Scott Bessent thinks they can wrap it up by Thanksgiving.
They already have a basic agreement where the U.S. said it wouldn't put very high taxes on these materials from China.
In return, China agreed not to make it harder for other countries to buy them by creating new export rules.
This deal is important because China controls most of the world's rare earth mining and processing, and the U.S. relies heavily on imports.
This helps make sure these important materials are available.
U.S. Treasury Secretary Scott Bessent indicated a rare earths deal with China could be finalized by Thanksgiving.
A framework agreement was previously announced between the U.S. and China.
Under the framework, the U.S. agreed not to impose 100% tariffs on Chinese imports.
China agreed to withhold an export licensing regime for critical rare earth minerals and magnets.
The deal aims to stabilize the supply of rare earths, essential for various technologies.
China controls approximately 70% of global rare earth mining and over 90% of processing capacity.
The U.S. imported 80% of its consumed rare earths in 2024, highlighting reliance on foreign sources.
- Who
- U.S. Treasury Secretary Scott Bessent
- What
- A potential rare earths deal between the U.S. and China nearing finalization.
- When
- Hopefully by Thanksgiving
- Where
- Not explicitly stated, but remarks aired on Sunday.
- Why
- To finalize a framework agreement that includes the U.S. not imposing 100% tariffs on Chinese imports and China holding off on an export licensing regime for rare earths, aiming to stabilize supply.
US Perspective
China's Position
Tariff Stance on Chinese Imports
US Perspective
The U.S. agreed not to impose 100% tariffs on Chinese imports as part of a framework deal.
China's Position
While not explicitly stated as a 'stance', China's agreement to the framework implies acceptance of the U.S. tariff terms.
Export Licensing Regime
US Perspective
China committed to delaying an export licensing regime on critical rare earth minerals and magnets.
China's Position
China's commitment to delaying the export licensing regime is a key part of the framework agreement.
Commitment to Agreements
US Perspective
U.S. Treasury Secretary Scott Bessent expressed confidence that China will uphold its commitments.
China's Position
This refers to China's role in upholding commitments within the trade truce framework.
- Deal Status
- Framework agreement announced, aiming for finalization by Thanksgiving.
- Key Parties
- United States and China
- Involved Materials
- Rare earths minerals and magnets
- Potential US Action (Framework)
- Avoided imposing 100% tariffs on Chinese imports.
- Potential China Action (Framework)
- Agreed to delay an export licensing regime for critical rare earth minerals and magnets.
- China's Global Market Share (Mining)
- Approximately 70%
- China's Global Market Share (Processing)
- Over 90%
- US Rare Earths Import Reliance (2024)
- 80%
