US-China Trade Truce Leaves Military Rare Earths Issue Unresolved

The US and China recently agreed to ease some trade tensions, but one big issue remains unsolved — rare earth magnets used in US military equipment like fighter jets and missiles. Why it matters: China controls nearly all global production and refining of rare earths, especially specialized magnets like samarium used in defence. The US wants access, but China isn’t giving export clearance for these military-use materials. What happened in London talks: • The two sides discussed rare earths, AI chips, tariffs, and more. • China agreed to fast-track export licenses for non-military US companies. • But it refused to clear exports of magnets used in military tech. • China linked progress on rare earths to the US lifting AI chip curbs, but the US said no deal there. Background: • In April, China tightened its rules on rare earth exports. • The US responded with bans on certain tech exports to China. • A previous Geneva deal to cut tariffs hit a wall over rare earth issues. Current status: • Some rare earths (used in cars, electronics) are moving forward. • Military-use ones are still blocked. • No final trade deal expected before the August 10 deadline. China is using its control of rare earths as leverage. The US wants a better deal, but real progress looks unlikely soon. Bottom line: The trade truce is a step forward, but big issues like defence materials remain stuck, making a full deal hard to reach.