The US and China have reached a significant trade agreement focused on rare earth minerals, which are crucial for many modern technologies. This deal comes after China had banned exports of important materials such as gallium and germanium, causing serious concerns about the impact on the US economy. Experts estimated that such restrictions could reduce the US GDP by $3.4 billion annually, adding up to a $34 billion loss over ten years.
Under the new framework, China has agreed to speed up the export license approvals for these minerals, while the US will remove some of its trade restrictions on Chinese goods. This agreement follows months of talks in Geneva and London and represents a breakthrough in easing tensions between the two countries. Rare earth minerals are essential for producing semiconductors, solar cells, batteries, and military equipment, making this deal vital for multiple industries.
.jpg)
Although there are still challenges ahead, including concerns about the short duration of export licenses, the deal is a hopeful sign that both countries are working to avoid further economic damage and ensure stable supply chains for critical minerals.
