Beijing [China], June 27 (ANI): In what is seen as a major breakthrough after weeks of strained negotiations, China on Friday signaled that it would approve the export of rare earth minerals to the United States, just hours after White House officials confirmed that a bilateral deal had been reached, CNN reported.

Rare earth elements, essential for manufacturing electronics, electric vehicles, and advanced military equipment, have become the latest flashpoint in the US-China trade standoff, with supply chain restrictions replacing tariffs as the key battleground.

'China will approve the export application of controlled items that meet the conditions in accordance with the law. The United States will cancel a series of restrictive measures taken against China accordingly,' China's Ministry of Commerce said in a statement, CNN reported.

The statement came in response to a specific question on whether 'China will accelerate the export of rare earths to the United States.'

The announcement follows statements on Thursday from US President Donald Trump and his Commerce Secretary Howard Lutnick confirming that a deal had been reached. The agreement is seen as a formalisation of the consensus achieved during talks earlier this month in London, pending approval by Trump and Chinese President Xi Jinping.

US Commerce Secretary Howard Lutnick told Bloomberg News that China is 'going to deliver rare earths to us,' and that 'we'll take down our countermeasures' once that happens. These measures refer to US export curbs imposed in May after Washington accused Beijing of holding up rare earth exports despite a deal reached in Geneva that month, CNN reported.

President Trump, while speaking at a White House event on Thursday, said, 'We just signed with China yesterday,' though he did not elaborate further.

In its statement, the Chinese Commerce Ministry expressed hope that both countries could 'continuously enhance consensus, reduce misunderstandings, strengthen cooperation, and jointly promote the healthy, stable and sustainable development of China-US economic and trade relations,' as reported by CNN.

China dominates the global rare earths industry, controlling around 90% of global processing, according to the International Energy Agency.

Last month's Geneva agreement to roll back tariffs collapsed soon after as Washington accused Beijing of failing to lift rare earth export controls. The US responded with export curbs on chips, software, ethane, and jet engines, while also threatening visa restrictions for Chinese students. China maintained that it was adhering to the Geneva understanding and accused the US of backtracking, CNN reported.

Negotiations resumed in London in June, following which Trump announced that both sides had agreed to relax export restrictions. He also suggested that Chinese students would again be allowed to attend American universities. 'Magnets and any necessary rare earths will be supplied up front by China,' Trump posted on social media.

CNN reported that despite Beijing's repeated assurances about 'speeding up' approvals for rare earth exports under its new dual-use licensing regime introduced in April, exporters must obtain case-by-case shipment clearances and provide documentation on end-use.

Experts and industry insiders said US companies still face challenges securing adequate supplies of rare earths, particularly military contractors, as China's dual-use export rules are expected to continue blocking shipments to defence-related buyers, as reported by CNN. (ANI)