Article

China has agreed to grant export licenses for rare earth elements such as gallium, germanium, and graphite in exchange for tariff adjustments with the U.S., which is simultaneously developing domestic production capabilities, including a rare earths mine in Texas. This deal is vital for industries like electric vehicles and defense systems, as it aims to mitigate supply shocks caused by China's earlier export restrictions. Economists stress the strategic importance of these materials for modern industrial and defense supply chains while the U.S. works to reduce its reliance on Chinese imports.