China Delays Rare Earth Rules, Commits to Multi-Year U.S. Soybean Purchases

U.S. Treasury Secretary Scott Bessent announced on Sunday that China will postpone its expanded rare earth export licensing for one year. The delay provides U.S. manufacturers and technology companies temporary certainty in the supply of critical minerals, which are essential for electronics, defense equipment, and renewable energy components.

China will also purchase large volumes of U.S. soybeans over the next several years, offering farmers guaranteed sales and revenue stability. On CBS’s Face the Nation, Bessent described these purchases as “substantial” and noted that they would immediately benefit the current crop season while securing future planting cycles. On ABC’s This Week, he added that the formal announcement of the trade deal between President Donald Trump and Chinese President Xi Jinping, expected next Thursday, will finalize the arrangement.

Bessent confirmed that the details for transferring TikTok ownership to U.S. companies have been completed. Once the trade agreement is signed, the transaction could proceed immediately, ensuring regulatory oversight and addressing U.S. national security concerns related to the platform.

The delayed rare earth rules provide relief for industries that rely on minerals such as neodymium, praseodymium, and dysprosium, which are critical for high-tech manufacturing. The large-scale soybean purchases will directly affect U.S. farm incomes and stabilize commodity markets that have experienced volatility due to previous trade tensions.

The rare earth delay allows U.S. manufacturers to continue production without sudden supply disruptions, while the multi-year soybean purchases provide farmers with guaranteed sales. Together, these measures give companies and farmers concrete certainty, enabling them to plan production, shipments, and planting schedules with confidence.

Also Read: US and China Reach Preliminary Trade Deal Framework Ahead of Trump-Xi Talks