Highlights

• U.S. and China conclude weekend trade talks in Geneva with reports of 'substantial progress'
• Discussions centered on lifting China's export restrictions on critical rare earth elements
• Market reactions show cautious optimism with potential for improved trade relations

The recent U.S.-China trade discussions over the weekend in Geneva concluded with both nations reporting "substantial progress" and plans to release a joint statement today, Monday May 12, 2025.  While specific details remain forthcoming, the talks have raised expectations for a de-escalation in the ongoing trade conflict, particularly concerning items Rare Earth Exchanges (REEx) suggests such as rare earth elements.

China's previous export restrictions on seven critical rare earths had significantly impacted global supply chains, affecting industries from defense to electronics. The U.S. delegation emphasized the importance of lifting these curbs to stabilize markets and reduce dependency on Chinese supplies, cites Investor’s Business Daily, Asia Times, and other media. Rare REEx monitored the recent China delegation status update led by He Lifeng via Shanghai Eyes.

Market reactions have been cautiously optimistic. The VanEck Rare Earth/Strategic Metals ETF (opens in a new tab) (REMX) and MP Materials Corporation (opens in a new tab) (MP) saw modest gains, reflecting investor anticipation of improved trade relations. However, analysts caution that the supply chain vulnerabilities and associated costs will persist without concrete commitments to ease rare earth export restrictions.

The forthcoming joint statement is expected to provide clarity on these issues and outline steps toward a more balanced trade framework between the two economic powers.