China has decided to temporarily halt export restrictions affecting 28 American companies following a recent trade accord struck with the Trump administration during talks in Switzerland.
However, China will maintain its ban on exports of seven rare earth metals to the United States, which are critical for the defense, energy, and automotive sectors within the country.
A statement from the Geneva trade discussions indicated that China has committed to “adopt all necessary administrative measures to suspend or remove the non-tariff countermeasures taken against the United States since April 2, 2025.”
Among these countermeasures are the restrictions on rare earth exports.
On April 4, China revealed a suite of retaliatory actions in response to President Donald Trump’s imposition of “liberation day” tariffs, which included export limits on the seven rare earth metals: Samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium.
The reason for the exclusion of the rare earth control measures from the recent announcements by the Chinese Commerce Ministry remains unclear.
On Wednesday, China took a notable step by removing 28 American companies from its export control list for dual-use items for a period of 90 days. Additionally, 17 companies were also removed from an “unreliable entity list,” with 11 exempted for the same duration.
That same day, the Ministry of Commerce released a statement regarding its campaign against rare earth smuggling, emphasizing the need for enhanced government regulation of these strategic metals due to national security concerns.
The statement asserted, “All departments are in agreement that comprehensive control of strategic minerals is vital.”
The overwhelming majority of rare earth elements imported by the United States originate from China, making them a key leverage point in trade discussions with Washington.
A social media account linked to the national broadcaster CCTV has alluded to the importance of these metals during the ongoing negotiations.
“Given that U.S. defense industries are currently ‘choked by rare earth shortages’, what consequences might arise for American weaponry and equipment?” posted the account Yuyuantantian last Friday.
The 28 American companies that received a reprieve from dual-use export restrictions are frequently targeted by Beijing sanctions, particularly those engaged in the defense field.
The initial group of 16 companies was included on the Chinese export control list just days after Trump announced significant tariffs on the majority of imports from China on April 4.
This group comprises companies such as Universal Logistics Holdings, Cyberlux, Hudson Technologies, and Oceaneering International.
On April 9, Beijing added another dozen companies to the export control list, coinciding with Trump’s announcement of a three-month suspension of tariffs for countries other than China. This round included Teledyne Brown Engineering, Kratos Unmanned Aerial Systems, and Insitu.
Exports of dual-use items from China require prior approval from the nation’s Commerce Ministry.
The 17 companies classified on the “unreliable entity list” face prohibitions on both imports and exports to China, as well as restrictions on new investments within the country.
Among those granted a temporary exemption from the “unreliable entity list” are several drone manufacturers, including Sierra Nevada Corp. and Kratos.
China added 11 firms to this list on April 4 and an additional six on April 9.
