Treasury Secretary Scott Bessent and trade representative Jamieson Greer told Vice Premier He Lifeng on Friday that China must fully honour its trade commitments at once, particularly on rare earths and farm goods, before two expected Trump-Xi meetings.
At a glance
- The Busan trade agreement expires on January 10, which gives both sides a near-term deadline.
- Trump and Xi are expected to meet at APEC in Shenzhen and at the G20 in Miami.
- China's Commerce Ministry linked more farm purchases to the agreed reciprocal tariff cuts.
Background
Rare earths are a group of metals used in permanent magnets for motors, wind turbines and defence equipment. China controls shipments of these materials through export licences. Under the Busan agreement it promised general licences for US users and their suppliers. The agreement capped some US tariffs on Chinese goods, and Washington says it was designed to lift restrictions imposed in 2025.
What happened
Bessent and Greer held a call with He Lifeng on Friday and told him Beijing must carry out its commitments under the Busan trade agreement, Reuters reported.
Bessent said in a social media post that he stressed "the importance of China fully and immediately honoring its commitments". He added that "progress depends on concrete results".
The US Trade Representative's office said Greer stressed the need for "concrete actions" on agricultural purchases, rare earths and other critical minerals. BigGo Finance also reported the US concerns on rare earth supply from the Treasury's account of the call.
Why it matters now
The timing raises the stakes. The Busan deal expires on January 10, Reuters reported. Trump and Xi are expected to meet at the APEC summit in Shenzhen on November 18-19 and the G20 in Miami on December 14-15.
US officials have often said American companies cannot get enough rare earths and critical minerals from China under the deal. The Treasury said it would "closely assess" China's implementation.
Beijing has its own demand. Its Commerce Ministry said on Thursday that China is open to buying more US farm goods, but only if both sides carry out their reciprocal tariff-cut agreement.
What it means
Rare earth supply has become a test of the wider trade truce. Magnet makers and manufacturers outside China depend on those licences for steady supply, so any failure to renew the deal would raise supply risk for neodymium.
Indian makers of motors and electronics use rare earth magnets too, so a breakdown would be felt beyond the US. Neither side has announced new restrictions, so the near-term effect on prices is limited.
Our read
Outlook: bullish. US pressure shows supply remains short of what Washington expected, but no new restrictions have been announced.
What to watch
- The Trump-Xi meeting at APEC in Shenzhen on November 18-19.
- Whether the Busan deal is extended before January 10.
- Any change in China's rare earth export licences.
For information only, not investment advice.
Neodymium price in India
metalscost.com India reference price as of 2026-11-10.
Detailed analysis
Timeline
- 2026-11-06: Bessent and Greer press He Lifeng on rare earths and farm purchases in a call.
Government Policies
The US says China has not fully met its commitments on rare earth and critical mineral supply.
Trade Tariffs
The Busan deal, which capped US tariffs on Chinese goods at about 20%, expires on January 10.
Geopolitical Risks
Rare earth supply is now a central issue before two expected Trump-Xi meetings.
What could lift prices
- US officials say companies cannot get enough rare earths from China.
- A failure to extend the Busan deal could tighten supply.
What could weigh on prices
- The call keeps both sides talking before two leaders' meetings.
- A tariff-cut deal could ease rare earth licensing.
Country impact
| Country | Impact | Reason |
|---|---|---|
| China | High | It controls much of the rare earth supply and faces US pressure. |
| United States | High | American companies say they cannot get enough rare earths. |
| India | Medium | Indian motor and electronics makers also use rare earth magnets. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Automotive Manufacturing | Negative | Motors depend on rare earth magnets, so supply limits raise risk. |
Who gains, who loses
- Rare earth producers outside China: Supply worries strengthen the case for buying from other sources.
- Magnet buyers in the US: They continue to face uncertain supply from China.
Other ways this could play out
- If Trump and Xi extend the deal in Shenzhen, licensing could improve and supply fears could ease.
- If talks stall before January 10, export controls could tighten again.
Price risks
- Either side could respond with new trade measures.
- Rare earth supply could stay short even if the deal is extended.
Technical view
Price is trading below both its 20-period and 50-period moving averages, a bearish alignment.
Computed from metalscost.com's own stored price history.
China
United States
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