# US-China Extends Rare Earths Trade Truce

The United States and China have extended their trade truce to January 10, 2027, maintaining ongoing restrictions and export controls on critical rare-earth elements essential to aerospace, automotive, and defense supply chains. Despite the extension, key issues such as tariffs, technology transfer limits, and supply vulnerabilities remain unresolved, continuing to impact procurement strategies for government agencies and contractors reliant on these materials. Procurement professionals should assess supply chain risks related to rare-earth elements like permanent magnets and yttrium, and consider alternative sourcing or stockpiling strategies ahead of the January 2027 deadline.

- The extension sustains Chinese export controls that disrupt critical US and allied industrial sectors, emphasizing strategic supply chain vulnerabilities
- Agencies and contractors dependent on rare-earth materials must evaluate current contracts and supply agreements for potential disruptions
- This situation highlights the importance of diversifying supply sources and investing in domestic or allied rare-earth production capabilities
- Organizations should prepare for possible regulatory changes or shifts in trade policy following the January 10, 2027, truce expiration

**Jurisdictions:** federal
**Industries:** Defense & Military
**Topics:** Regulatory Compliance
**Published:** September 25, 2026

### Government Entities
- United States Government (USG)
- People's Republic of China (PRC)
- Japanese Government

### Key Quotes
> The summit largely validated the framework Rare Earth Exchanges laid out before Xi arrived: Washington needs time to build alternative industrial capacity; Beijing benefits from continued access to Western demand and technology.
> — Daniel, Founder of Rare Earth Exchanges

### Sources
- [US China Trade Truce Extended January 2027 Rare Earths](https://rareearthexchanges.com/news/us-china-trade-truce-rare-earth-chokepoints) - Rare Earth Exchanges