Seoul: China will suspend the current rare earth export restrictions against the US for a year, the Commerce Ministry announced following a meeting between US President Donald Trump and Chinese President Xi Jinping in South Korea, confirming Trump's earlier announcement.

According to Anadolu Agency, the Chinese Commerce Ministry stated that it will pause the implementation of the export control measures that were initially announced on October 9. This suspension will last for one year, during which specific plans will be studied and refined. The ministry also mentioned that adjustments will be made to China's countermeasures against US tariffs, with both nations agreeing to extend certain tariff exclusion measures.

The United States, in response, will put on hold a new rule introduced on September 29, which expanded the 'entity-list' export restrictions to include any entity with at least 50 percent ownership by one or more entities already on the list. This temporary halt is set to last one year.

President Trump indicated that the US would ease tariffs on Chinese goods in exchange for commitments from China to curb the flow of fentanyl, resume purchasing US soybeans, and continue exporting rare earth elements. Specifically, the US plans to reduce fentanyl-linked tariffs from 20 percent to 10 percent, thereby lowering the overall tariff burden from 57 percent to 47 percent.

On October 9, China had expanded its rare earth export restrictions, implementing limits on processing and manufacturing technologies and prohibiting collaborations with foreign companies without prior government approval. In response, Trump threatened to impose 100 percent tariffs on Chinese goods and restrict critical software exports. Although he initially announced that these tariffs would take effect on November 1, he later decided to ease tensions, paving the way for the meeting with Xi.