China Grants Rare Earth Export Licenses To Top Three U.S. Automakers

President Donald Trump held a highly anticipated 90-minute phone call with Chinese President Xi Jinping on Thursday. Trump described the conversation as “very good” and mentioned that a potential visit to China is being planned — though Beijing or Washington has not confirmed the trip.

To end the week, more positive trade news hit the wires late Friday morning in New York, as Reuters cited three sources saying that China has granted temporary export licenses to rare-earth supplies for three major U.S. automakers.

The export licenses for rare earths were granted to the three major U.S. automakers: General Motors, Ford, and Stellantis, the maker of Jeep. Sources noted:

At least some of the licenses are valid for six months, the two sources said, declining to be named because the information is not public. It was not immediately clear what quantity or items are covered by the approval or whether the move signals China is preparing to ease the rare-earths licensing process, which industry groups say is cumbersome and has created a supply bottleneck.

In April, China deployed non-tariff countermeasures against the U.S. amid the escalating trade war, including restrictions on rare earths exports and related magnets — moves that disrupted the supply chain for American companies. 

Readers are well aware that China controls approximately 90% of the global rare earths market and has repeatedly used this dominance as a strategic economic weapon.

• European Industry Under Siege: China Deploys Rare Earths As Economic Weapon

In response, Western nations are ramping up efforts to boost production in allied countries to reduce supply chain vulnerabilities…

• U.S. Can Produce Rare Earths If China Stops Exports – But There’s A Catch

Earlier this week, a separate Reuters report said President Trump plans to use emergency powers under the Defense Production Act to bolster domestic production and processing of these metals.

The broader takeaway is clear: the U.S. must reclaim critical supply chains as the global order fractures into a bipolar state—while simultaneously accelerating the deployment of new hemispheric defense capabilities. We outlined this strategic mission for readers in a recent note titled:

• Golden Dome Unleashes U.S. Hemispheric Defense Theme – And Goldman Finds One Firm Stands Out

It’s a five-year sprint to secure critical supply chains and build out hemispheric defense infrastructure before the 2030s kick-off. This comes as the Biden-Harris regime screwed around for four years, more focused on Marxist DEI and gender nonsense than actually preparing the nation to meet the rising threat from China today and in the next decade.