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According to recent reports, sources have told Reuters that the trade agreement reached between the US and China in London does not cover export restrictions on military rare earth magnets. This agreement was made against the backdrop of a trade truce, but Beijing has not committed to exporting special rare earth magnets used in fighter jets and missile systems to the US.

During last week's negotiations in London, the Chinese side appeared to link the lifting of restrictions on military rare earth magnets to US export controls on advanced AI chips to China. One source indicated that China promised to establish a fast-track approval process for applications from US non-defense manufacturers among the existing tens of thousands of rare earth export applications. The issued licenses will be valid for six months after approval.

Additionally, Beijing proposed to open a “green channel” to expedite approvals for reliable American companies. Initial signals are positive: last Wednesday, China's rare earth magnet manufacturer, Jinli Permanent Magnet, announced that it had obtained export permission to the US. The Ministry of Commerce of China also confirmed approvals for certain compliance applications.

However, the sources reiterated that China has not made concessions regarding special rare earths, including neodymium for military applications. These special rare earths are not included in the fast-track process agreed upon in London. The primary needs for automobile and other industrial manufacturers revolve around different types of rare earth magnets, including dysprosium and terbium.