GANZHOU, China — China’s dominance over critical minerals in global supply chains was a powerful bargaining chip in trade talks between Beijing and Washington that concluded with both sides saying they have a framework to pursue a deal.
China has spent decades building the world’s main industrial chain for mining and processing such materials, which are used in many industries such as electronics, advanced manufacturing, defense and health care.
Mines and factories in and around Ganzhou, a key production hub for rare earths, underpin China’s control over the minerals. Many residents grew up collecting rocks containing the valuable minerals from the forested hills surrounding the southern city and today make a living from mining, trading or processing them.
Responding to ever higher tariffs and other controls on advanced technology, China told exporters of certain key rare earths and other critical minerals to obtain licenses for every shipment abroad. Approvals can take weeks, leading to supply chain disruptions in the U.S. and other countries.
President Donald Trump said Wednesday that China would make it easier for American industry to obtain much-needed needed magnets and rare earth minerals, clearing the way for talks to continue between the world’s two biggest economies. In return, Trump said, the U.S. will stop efforts to revoke the visas of Chinese nationals on U.S. college campuses.
But details remain scarce. Beijing has not confirmed what the negotiators agreed to, and Chinese President Xi Jinping and Trump himself have yet to sign off on it.
The Chinese Commerce Ministry said Saturday it had approved a “certain number” of export licenses for rare earth products, apparently acknowledging Trump’s personal request to Xi during a phone call last week. And on Wednesday, the Ganzhou-based rare-earth conglomerate JL MAG Rare-Earth Co. confirmed it had obtained some export licenses for shipments to destinations including the U.S., Europe and Southeast Asia.
Experts say, however, Beijing is unlikely to do away with the permit system enabling it to control access to those valuable resources.
The only scenario in which China might deregulate its critical minerals export is if the U.S. first fully removes tariffs imposed on Chinese goods as part of the trade war, said Wang Yiwei, a professor of international affairs at Renmin University, echoing the Chinese government’s earlier stance.
“Without that,” he said, “it will be difficult to blame China for continuing to strengthen its export controls.”
In 1992, Deng Xiaoping, the leader who launched China’s ascent as the world’s biggest manufacturing power, famously said “the Middle East has oil, China has rare earths,” signaling a desire to leverage access to the key minerals.
Several generations later, Beijing has made its rich reserves of rare earths, a group of 17 minerals that are abundant in the earth’s crust but hard, expensive and environmentally polluting to process, a key element of China’s economic security. In 2019, during a visit to a rare earth processing plant in Ganzhou, Xi described rare earths as a “vital strategic resource.”
China today has an essential monopoly over “heavy rare earths,” used for makin