### US-China Trade Truce: Rare Earths Remain a Sticking Point The recent trade truce between the United States and China, reached during negotiations in London, has left unresolved issues regarding the export of specialized rare earth elements crucial for military applications. Despite the agreement, Beijing has not committed to granting export clearance for rare-earth magnets needed by U.S. military suppliers, which are essential for fighter jets and missile systems. This unresolved issue poses a significant challenge to defense supply chains and highlights the complexities of U.S.-China relations in the context of national security and trade [https://www.straitstimes.com/asia/east-asia/china-trade-truce-leaves-military-use-rare-earth-issue-unresolved-sources-say, https://www.benzinga.com/news/politics/25/06/45943773/us-china-trade-truce-offers-no-relief-for-defense-supply-chains-as-china-links-rare-earths-to-chip-export-curbs-report]. ### Structure of the Trade Truce and Its Implications 1. **Overview of the Trade Agreement** - The U.S. and China reached a framework agreement aimed at easing trade tensions, but critical issues remain unresolved, particularly concerning rare earth exports [https://www.reuters.com/world/china/us-china-trade-truce-leaves-military-use-rare-earth-issue-unresolved-sources-say]. 2. **Military Implications** - The lack of commitment from China to allow exports of rare earth magnets poses risks to U.S. military supply chains, which rely on these materials for advanced technologies [https://www.bloomberg.com/news/articles/2025-06-15/china-us-deal-didn-t-address-some-rare-earths-controls-reuters]. 3. **National Security Concerns** - The unresolved export restrictions are tied to national security, complicating the broader trade relationship and potentially threatening future negotiations [https://www.business-standard.com/world-news/us-china-trade-truce-likely-leaves-military-use-rare-earth-issue-unresolved-125061500228_1.html]. 4. **Future Negotiations** - The ongoing deadlock over rare earths could hinder the potential for a more comprehensive trade deal, as both nations navigate their strategic interests [https://www.eutoday.net/rare-earths-deadlock-clouds-us-china-trade-truce]. ### Supporting Evidence and Data - **Key Points from the Trade Agreement** - The agreement does not address the export of rare earths, which are critical for military applications [https://www.investing.com/news/economic-indicators/exclusiveuschina-trade-truce-leaves-militaryuse-rare-earth-issue-unresolved-sources-say-4096203]. - U.S. military suppliers are particularly affected, as they require these materials for essential defense technologies [https://www.moneycontrol.com/world/exclusive-us-china-trade-truce-leaves-military-use-rare-earth-issue-unresolved-sources-say-article-13123412.html]. ### Conclusion: The Path Forward In summary, while the U.S. and China have made strides towards a trade truce, **the unresolved issues surrounding rare earth exports remain a significant barrier** to a more comprehensive agreement. The implications for military supply chains and national security are profound, necessitating further negotiations to address these critical concerns. 1. **Trade Agreement Overview**: Framework established but lacks clarity on rare earth exports. 2. **Military Supply Chain Risks**: U.S. defense reliant on rare earths faces potential disruptions. 3. **National Security Tensions**: Export restrictions complicate U.S.-China relations. 4. **Future Negotiation Challenges**: Ongoing deadlock could hinder broader trade discussions. The situation underscores the delicate balance both nations must maintain as they navigate their complex economic and strategic relationship [https://www.indexbox.io/blog/us-china-trade-talks-stalled-over-rare-earth-magnets, https://www.capitalbrief.com/briefing/us-china-deal-doesnt-tackle-some-rare-earths-restrictions-reuters-c74d40e3-22e1-4b52-910a-3efebd242517].