Bessent Hoping Rare Earths From China Flow Faster

Udumbara Udumbara
Jul 2, 2025 - 09:57 Updated: Jul 2, 2025 - 09:53
0
Bessent Hoping Rare Earths From China Flow Faster
.

Rare earth products from China are still not coming to the United States at a speed Washington would like to see, according to Treasury Secretary Scott Bessent.

“We are hoping that they will flow at a faster rate,” Bessent said on Tuesday in an interview with Fox News.

“Rare earth magnets are flowing. They are not flowing as they did before April 4, but we are confident that the Chinese will live up to their side of the deal.”

The remarks came after the Chinese regime agreed to resume the export of rare earths to the United States when Beijing and Washington declared a truce following a months-long trade war.
China has a stranglehold on most critical minerals, including rare earth elements, which are crucial for products ranging from consumer electronics, computers, and vehicles to X-ray machines, wind turbines, nuclear reactors, and aerospace components.
On April 4, China’s Ministry of Commerce announced controls on the exports of seven medium and heavy rare earths, including samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium amid a raft of tit-for-tat moves by Beijing and Washington, leaving the United States, EU, and Asian automakers scrambling for supplies.

According to data published by China’s General Administration of Customs, in May, China’s export of rare earth magnets to the United States plummeted to 51 tons from 272 tons in April and a peak of 967 tons in January.

Following intense talks in Geneva and London, Beijing and Washington reached an agreement in mid-June, with both rolling back tariffs and other punitive measures.

The United States reduced tariffs on Chinese goods from 145 percent to 55 percent, while the Chinese regime dropped its rate on U.S. goods from 125 percent to 10 percent.

In addition, Beijing agreed to supply necessary rare earths while Washington will continue to allow Chinese students to study at U.S. universities.

However, it’s unclear how long it will take for the Chinese regime to approve applications that have piled up in recent weeks.

European suppliers have received enough licences to avoid the widespread disruptions predicted earlier this month, but hundreds of permits remain pending, Nils Poel, head of market affairs at supplier association CLEPA, told Reuters on June 30.

The rate of issuance is “accelerating” and has risen to 60 percent from 25 percent, he said, but cases where the end users are based in the United States, or where products move through third countries like India, are taking longer or are not being prioritized.

U.S. magnet maker Dexter Magnetic Technologies, which has defense clients among others, has received just five of 180 licences since April, CEO Joe Stupfel told Reuters, adding those were intended for non-defense sectors.

“It’s an extended delay,” he said. “It’s 45 days trying to get the paperwork right for the supplier, and then it’s 45 more days or so before any licences are granted.”

Reuters contributed to this report.
.

Read More