- China’s Ministry of Commerce affirms rare earth export controls are legal, not prohibitive, and will approve compliant civilian applications.
- US President Trump’s social media comments signal a potential softer stance, suggesting support for China rather than escalation.
- Analysts expect market rebound potential as softened rhetoric follows 100% tariffs that triggered record crypto market liquidations.
Signs of a possible easing in the strained trade relationship between the United States and China emerged on Sunday, after Beijing issued a statement suggesting it was open to resuming trade discussions, raising hopes among analysts of a market recovery.
China’s Ministry of Commerce confirmed it was “ready to strengthen dialogue” with global partners following controversy over its newly announced export controls on rare earth minerals. The ministry described the measures as a “legitimate step” under Chinese law to improve China’s export control framework and uphold international obligations, noting that the move aimed to safeguard “world peace and regional stability” rather than restrict trade.
Officials clarified that export control does not mean export prohibition, emphasising that licence applications meeting regulations – particularly for civilian use – would continue to be approved. They also said China would “actively consider” general licences and exemptions to maintain global supply chain stability.
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Analysts Interpret US Tone as Conciliatory
US President Donald Trump has also posted on Truth Social that the US is willing to support Beijing rather than escalate tensions.
The remarks followed a turbulent week in financial markets, with crypto suffering record 24-hour liquidations after Trump announced 100% tariffs on Chinese goods. Analysts suggest the more conciliatory tone could support renewed discussions after months of volatility caused by tariff disputes.
Although Trump had previously said there was “no reason” to meet President Xi Jinping at the upcoming Asia-Pacific Economic Cooperation (APEC) summit in Seoul on 31 October, Jeff Park from Bitwise Investments said the meeting would “definitely happen,” citing Trump’s interest in ceremonial aspects rather than trade policy itself.
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