Energy Insider: China Pauses Rare-Earth, Lithium-Battery Export Controls

1. After a high-level meeting between Chinese President Xi Jinping and U.S. President Donald Trump in Busan, South Korea, on October 30, China announced it would suspend its newly introduced export controls on rare earths, lithium batteries, and related equipment for one year. These controls had initially been introduced on October 9. In a related reciprocal move, the United States agreed to suspend for one year its rule, referred to as the "affiliates rule," introduced on September 29, which imposes export controls on certain transactions where 50% or more of the entity is controlled through affiliates. These decisions were part of broader efforts to de-escalate trade tensions between the two countries and come at a time of strategic competition over critical supply chains. [para. 1]

2. Additionally, as part of this diplomatic arrangement, the United States will suspend enforcement of measures associated with its Section 301 investigation into China’s maritime, logistics, and shipbuilding industries for one year. In response, China will also suspend its countermeasures for the same period, effectively putting a halt to a dispute over newly implemented port fees. This mutual stand-down is expected to reduce immediate tensions in the maritime and logistics sectors, benefiting industries and supply chains involved in cross-Pacific trade. [para. 3]

3. To strengthen its critical mineral and rare earth supply chains, the U.S. has entered into cooperation frameworks with key Asian allies. Agreements were signed with Japan, Malaysia, and Thailand—countries important to the global supply of these minerals. On October 28, President Trump and Japan’s new Prime Minister Sanae Takaichi formalized their bilateral pact, while earlier, on October 26, memorandums of understanding were concluded with Malaysia and Thailand. These moves are broadly seen as a strategic push to establish a resilient mineral supply network that is less dependent on China, which has historically dominated the sector. [para. 5]

4. In another development, President Trump announced on October 30 via social media that China had agreed to begin the process of purchasing energy products from the United States, including the possibility of a significant deal to buy oil and gas from Alaska. The announcement indicated that officials from both countries would soon meet to discuss details. However, as of this report, there has been no official statement from China confirming these intentions. If realized, renewed Chinese energy imports from the U.S. would mark a notable development in energy trade between the world’s two largest economies. [para. 7]

5. In domestic policy, proposals for China’s 15th Five-Year Plan (2026–2030), released on October 28, call for continuously increasing the share of new energy in the national energy mix. The plan emphasizes the systematic replacement of fossil fuels, the construction of a modernized power system, and the achievement of China’s committed timeline for reaching its carbon emissions peak. These objectives underscore China’s strategy to address climate change and upgrade its energy infrastructure. [para. 9]

6. To support strategic emerging industries, a new special fund has raised 51 billion yuan (about US $7 billion) in its initial phase. This fund, organized by the State-owned Assets Supervision and Administration Commission and managed by China Reform Holdings Corp. Ltd., is set for a duration of up to 15 years. The fund’s resources will be directed into sectors deemed nationally strategic for future economic development. [para. 11]

7. In the private sector, major Chinese lithium producers such as Tianqi Lithium Industry Inc. and Ganfeng Lithium Group Co. Ltd. have returned to profitability in the third quarter of 2025, supported by a rebound in lithium prices. Tianqi Lithium reported a net profit of 95.5 million yuan ($13.4 million) attributable to shareholders for the quarter, reversing a loss from the previous year, even as revenue dropped by 30% year-on-year. The company credits improved alignment between ore purchase and product sales prices for the profit turnaround. [para. 13]

8. Finally, China’s electricity market experienced notable growth, with 4.9 trillion kilowatt-hours traded in the first nine months of 2025—a 7.2% year-on-year increase according to the National Energy Administration. Importantly, market-based transactions now account for 63.4% of all national electricity consumption, reflecting ongoing reforms aimed at increasing market efficiency and transparency in the sector. [para. 15]