General License for Rare Earths and Critical Minerals? Interpreting the Differences Between the U.S. and China’s Trade Deal Announcements

Today, the White House released a fact sheet outlining the key outcomes of the Trump–Xi summit. Interestingly, compared with the statement issued by China’s MOFCOM last week, the U.S. version reveals some notable differences between the two sides.

We should review the two statements one by one to assess these differences and understand their meaning.

• “China will suspend the global implementation of the expansive new export controls on rare earths and related measures that it announced on October 9, 2025.” ( aligns with what Beijing officially announced.)

• “China will issue general licenses valid for exports of rare earths, gallium, germanium, antimony, and graphite for the benefit of U.S. end users and their suppliers around the world. The general license means the de facto removal of controls China imposed in April 2025 and October 2022.” (This was not mentioned in China’s official statement, and it’s where the biggest discrepancy lies between the Chinese and U.S. versions regarding rare earths. It does represent a concession from China, but whether it’s a major concession or enough to truly resolve the rare earth issue is something I’ll explain separately later.)

• “China will take significant measures to end the flow of fentanyl to the United States. Specifically, China will stop the shipment of certain designated chemicals to North America and strictly control exports of certain other chemicals to all destinations in the world.” (China’s version simply said that “the two sides reached a consensus on cooperation against fentanyl.” The next step will likely be that the Ministry of Public Security takes concrete actions, based on China–U.S. anti-drug cooperation, to strengthen control over exports of more fentanyl precursors. )

• “China will suspend all of the retaliatory tariffs that it has announced since March 4, 2025.” (This includes tariffs on a wide range of U.S. ag goods: chicken, wheat, corn, cotton, sorghum, soybeans, pork, beef, seafood, fruits, vegetables, and dairy. In fact, the U.S. tariffs linked to fentanyl consist of two parts: a 10% tariff announced on February 1 and another 10% announced on March 3. China’s countermeasures differed for the two rounds, with the tariffs targeting the above ag goods being a retaliation against the US March 1 tariff. What the U.S. just rolled back is exactly the March 3 tranche, and China correspondingly removed its retaliatory tariffs on ag goods. )

• “China will suspend or remove all of the retaliatory non-tariff countermeasures taken against the United States since March 4, 2025, including China’s listing of certain American companies on its end-user and unreliable entity lists. ”(This one is somewhat unexpected, and it wasn’t mentioned in China’s official statement as well. The next step is to see whether Beijing, as it did after the London talks, will issue a notice formally removing the relevant U.S. entities from the Unreliable Entity List and the export control list. Another possibility is that MOFCOM might handle it quietly to avoid any public attention. The number of affected firms is small, mostly defence-related, and most have little to no business with China. These sanctions were largely symbolic.)

• “China will purchase at least 12 million metric tons (MMT) of U.S. soybeans during the last two months of 2025 and at least 25 MMT annually in 2026, 2027, and 2028. China will also resume imports of U.S. sorghum and hardwood logs. “(This wasn’t emphasised in China’s statement either, but in practice, there seems to be very few obstacles.)

• “China will take appropriate measures to ensure the resumption of trade from Nexperia’s facilities in China, allowing production of critical legacy chips to flow to the rest of the world. “(Given that the 50% rule has already been suspended, it isn’t surprising that China also show some flexibility. And another reason might be that the pressure from the EU is also very huge.)

• “China will remove measures taken in retaliation for the U.S. Section 301 investigation into China’s targeting of the maritime, logistics, and shipbuilding sectors for dominance, and lift sanctions on various shipping entities.” (aligns with China’s official statement.)

• “China will extend the expiration of its market-based tariff exclusion process for U.S. imports through December 31, 2026.” (Consistent with China’s statement.)

• “China will terminate its various investigations targeting U.S. semiconductor supply chain firms, including its antitrust, anti-monopoly, and anti-dumping probes.” (These were countermeasures in response to the 50% rule; since the rule is now suspended, Beijing is halting these investigations accordingly.)

My assessment to the rare earth “general license”:

The “general license” mentioned in the White House statement is clearly the elephant in the room, a new concession from China on rare earth controls that Beijing itself has not disclosed.

However, the line “The general license means the de facto removal of controls China imposed in April 2025 and October 2022” could be interpreted differently depending on one’s perspective and position. Similarly, China could frame the suspension of the 50% rule as breaking the long-held U.S. myth that export controls are non-negotiable — effectively placing limits on Washington’s previously unchecked ability to expand export controls and impose economic sanctions.

The origins of China’s general licensing system for export control can be traced back to the early 2000s. To fulfill its international non-proliferation obligations and reduce the compliance burden on enterprises, the Chinese government in 2009 introduced the Administrative Measures on General Licenses for the Export of Dual-Use Items and Technologies, marking the first appearance of the “general license” concept：

Article 3

The term “general license for the export of dual-use items and technologies” as used in these Measures refers to the authorization granted by the Ministry of Commerce (MOFCOM), upon application by an exporter of dual-use items and technologies, after review in accordance with relevant administrative regulations and these Measures.

With such authorization, the exporter may, within the validity period and scope specified in the general license issued by MOFCOM, apply multiple times to the licensing authorities designated under the Administrative Measures on the Import and Export Licensing of Dual-Use Items and Technologies (MOFCOM and General Administration of Customs Order No. 29 of 2005) for export licenses of dual-use items and technologies.

Article 7

The state shall conduct strict examination and review over the implementation of general licenses for the export of dual-use items and technologies.

Export operators of dual-use items and technologies that apply for a general license (hereinafter referred to as “general license operators”) shall meet the following requirements:

1. Be a legally registered foreign trade operator;

2. Have established an internal control mechanism for the export of dual-use items and technologies;

3. Have been engaged in the export business of dual-use items and technologies for no less than two years;

4. For applicants of a Category A general license, they must have applied for no fewer than 40 export licenses for dual-use items and technologies annually for two consecutive years or more; for applicants of a Category B general license, they must have applied for no fewer than 30 export licenses for the same category of dual-use items and technologies annually for two consecutive years or more;

5. Have not been subject to criminal penalties or administrative sanctions by relevant authorities within the past three years;

6. Have relatively stable sales channels and end users for dual-use items and technologies.

Article 5

General licenses for the export of dual-use items and technologies are divided into Category A and Category B general licenses.

A Category A general license allows an exporter, within the validity period of the license, to export one or more specified dual-use items and technologies to one or more designated end users in one or more specified countries or regions.

A Category B general license allows an exporter, within the validity period of the license, to export the same category of specified dual-use items and technologies multiple times to fixed end users in a single specified country or region.

Article 6
The validity period of a general license for the export of dual-use items and technologies shall not exceed three years.

A general license allows qualified exporters to apply for export permissions multiple times within the license’s valid scope and duration, without having to go through case-by-case approval, thereby simplifying the process. The design of this system rests on a foundation of mutual trust between the government and enterprises—only companies that have established and effectively implemented internal compliance mechanisms are eligible.

The policy rationale behind it is twofold: on the one hand, to safeguard national security and uphold non-proliferation commitments; on the other, to facilitate long-term and stable export activities, reduce operating costs for enterprises, and improve regulatory efficiency.

In its 2021 white paper, MOFCOM noted that China’s export control regime “widely adopts internationally accepted systems such as license management, end-user and end-use certification, and general licenses,” while continuously enriching license categories and optimizing procedures to enhance both regulatory quality and the business environment.

China’s export control regime broadly adopts internationally recognized systems such as license management, end-user and end-use certification, and general licensing.

China has implemented a general licensing mechanism to diversify its export license management system. For exporters that have established and effectively operated internal export control compliance systems, general licenses may be granted—under specified conditions—allowing multiple exports to multiple countries, regions, or end users within the license’s validity period.

These diversified licensing measures have enhanced the precision and effectiveness of export license management.

Clear incentive measures have been established: exporters that have set up and effectively operated internal export control compliance systems may, in accordance with the law, be granted facilitation measures such as general licenses.

In this sense, the introduction and advancement of the general licensing system represent an important step in improving China’s export control framework. It arises both from domestic practical needs—such as facilitating exports to long-term and stable clients—and from lessons learned from the mature practices of the U.S. and EU in license exemptions and tiered management.

As early as 2017, during the drafting of China’s Export Control Law, industry stakeholders had already called for the establishment of a general licensing mechanism to provide a more convenient channel for routine technical exchanges. After years of deliberation, the mechanism was eventually codified in law and further detailed in the implementing regulations.

Article 14 of China’s Export Control Law

Export operators that have established an internal compliance system for export control and have maintained good compliance performance may be granted general licenses or other facilitation measures by the national export control authorities for the export of relevant controlled items. The specific measures shall be prescribed by the national export control authorities.

Article 15 of the Regulations on the Export Control of Dual-Use Items

The export of dual-use items shall obtain an individual license, a general license, or an export certificate through registration and information filing, in accordance with the Export Control Law and these Regulations.

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A general license permits an exporter to conduct multiple exports of specific dual-use items to one or more end users, within the scope, conditions, and validity period specified in the export license. The validity period of a general license shall not exceed three years.

Article 16
Export operators that have established and effectively implemented an internal compliance system for the export control of dual-use items, and that have relevant export records as well as relatively stable export channels and end users, may apply to the competent department of commerce under the State Council for a general license.

In addition to the materials specified in the preceding paragraph, applicants for a general license shall also submit the following:

1. A description of the operation and implementation of the internal compliance system for the export control of dual-use items;

2. A statement on the application for and use of export licenses for dual-use items;

3. An explanation of the export channels and relevant information about end users of dual-use items.

The rare earth export control measures announced on April 4 have drawn concern and diplomatic engagement from several countries. Beijing might have, in fact, been working on refining the specific implementation plan, in line with its stated goal of “improving regulatory efficiency and facilitating compliance.” On October 12, a MOFCOM spokesperson publicly stated that China would actively consider adopting “various facilitation measures” to improve the efficiency of rare earth export licensing, with general licenses being the first such measure mentioned.

Q: A reporter asked, “We’ve noticed that the Ministry of Commerce recently issued an announcement to strengthen export controls on rare earths and related items. How will these measures be implemented going forward?”

A: As a responsible major country, China has always been firmly committed to safeguarding both its own national security and shared international security, and has consistently followed a fair and reasonable approach by implementing export control measures in a prudent and proportionate manner.

Before introducing these measures, China conducted a thorough assessment of their potential impact on production and supply chains and is confident that the effects will be very limited. Prior to the announcement, China also notified relevant countries and regions through bilateral export control dialogue mechanisms.

Going forward, the Chinese government will conduct license reviews in accordance with the law and relevant regulations, approving applications that meet the stipulated requirements. At the same time, it will actively consider the application of various facilitation measures such as general licenses and license exemptions to effectively promote compliant trade.

I want to emphasize that China’s export control does not mean a ban on exports. As long as applications are for civilian use and in compliance with regulations, they will be approved. Relevant enterprises have no reason for concern. The Chinese government will, as always, work with all countries to firmly uphold world peace and regional stability, and jointly ensure the security and stability of global industrial and supply chains.

Therefore, a more accurate way to describe the situation might be this: China’s export controls on rare earths and critical minerals remain in place, but Beijing has agreed to grant eligible companies longer license durations — extending the validity period from the previous six months to as long as three years.

The key questions now are: how the general license system will be implemented in practice; how China can prevent it from effectively nullifying its rare earth export controls; and, if certain U.S. companies are indeed granted general licenses, what would be the standard? How China will enforce necessary verification or on-site inspection mechanisms to ensure these companies comply with regulations and that no re-export or diversion to U.S. military end users occurs. Going forward, I guess the two sides will likely need to conduct extensive, detailed consultations on these matters, and it seems that a lot of work needs to be done for the Chinese side.