China says rare earth controls lawful, will cooperate with US on 'reasonable' concerns

China will work with the US on "reasonable" concerns regarding its rare earth export controls, the Ministry of Commerce said on Wednesday, in a statement that defended its restrictions as legitimate and lawful.

Introduced in April 2025 in retaliation for US President Donald Trump's so-called Liberation Day tariffs, Beijing's controls continue to restrict exports of certain rare earths and other minerals, an issue US officials have repeatedly acknowledged.

China agreed to address concerns around shortages of rare earths such as yttrium and scandium as well as other critical minerals during the leaders' summit in Beijing last week, the White House said on Sunday.

In response to questions about that statement, China's Ministry of Commerce said both sides had discussed the issue and would study and resolve "each other's reasonable and lawful concerns."

"The Chinese government imposes export controls on rare earths and other critical minerals in accordance with laws and regulations, and reviews applications for compliant, civilian licenses," the statement added.

Issued days apart, the two statements reflect a new status quo where Washington appears to tacitly accept the export restrictions. In contrast, six months ago after the leaders' summit in Busan, the White House said they would be dismantled.

Another yttrium shipment

Shortages have been most acute for yttrium, which is used to protect turbine blades in aircraft engines or power plants from extreme heat.

The rare earth issue was highlighted in Sunday's White House statement and a separate interview with US Trade Representative Jamieson Greer.

Chinese customs data also released on Wednesday showed a 10-metric-ton export of yttrium oxide to the US in April, versus 60 tons in March.

Shipments averaged about 30 tons a month over the 13 months before controls were imposed versus 8 tons since.