Trump Says China Agrees to Resume Rare Earth Flow

US President Donald Trump revealed on Friday evening that Chinese President Xi Jinping had agreed to resume the flow of rare earth minerals to the United States.

"We've come a long way with the agreement with China," Trump told reporters aboard Air Force One.

Beijing has stepped up its use of rare earth minerals as a strategic lever through a stringent export licensing regime modeled after US sanctions, a move that is reshaping the trade war between China and the United States.

These measures give China unprecedented control over a vital joint in global supply chains, amid growing concern in Western capitals.

During his remarks aboard Air Force One, he stated that he believes the US is "doing very well" despite ongoing trade tensions and economic uncertainty.

He noted that there has been "a lot of progress" on the agreement with China ahead of Monday's discussions.

Recent weeks have seen intense activity by international companies seeking to secure mineral export licenses from China, following the inclusion of advanced types of rare earth minerals on a regulatory list last April.

In the latest development, US President Donald Trump spoke by phone with his Chinese counterpart, Xi Jinping, on Thursday evening to discuss this vital issue, amid the shutdown of some European production lines due to supply shortages. Meanwhile, White House trade advisor Peter Navarro said on Friday that a meeting between US and Chinese officials on trade is scheduled to take place within seven days.

China produces approximately 70% of the world's rare earth minerals and has a monopoly on processing technologies, giving it an unparalleled industrial advantage. With the implementation of the new licensing system, the Chinese Ministry of Commerce effectively controls the flow of vital raw materials for auto, technology, and defense industries around the world.

This week, some European companies were forced to suspend production after their stocks ran out, threatening a wider wave of industrial disruptions if Chinese approvals continue to be delayed.