Beijing, DZWatch – China’s Ministry of Commerce announced today the suspension of a key provision related to export controls on dual-use materials to the United States. The decision marks a potential easing of trade tensions between the two economic superpowers.
According to a statement released by the Ministry and reported by Xinhua News Agency, the suspension of Clause 2 of Announcement No. 46 from 2024 is effective immediately and will remain in effect until November 27, 2026. This clause had previously restricted the export of dual-use materials, including gallium, germanium, antimony, and ultra-hard materials, to the United States. It also mandated stricter scrutiny of end-users and intended purposes for graphite exports to the US.
The now-suspended provision effectively prohibited initial exports of the specified materials to the United States, imposing a significant hurdle for American companies reliant on these crucial components. The move is seen as potentially beneficial for US industries requiring these rare earth elements and advanced materials.
This policy shift follows a meeting between Chinese President Xi Jinping and US President Donald Trump on October 30th in South Korea. During that meeting, both leaders reportedly agreed to roll back some of the punitive measures implemented amidst escalating tariff disputes. This suspension could signal a broader effort to de-escalate trade tensions and foster a more cooperative economic relationship.
The long-term implications of this suspension remain to be seen, but it represents a notable development in the ongoing economic relationship between China and the United States. DZWatch will continue to monitor this situation and provide updates as they become available.
