US Issues Formal Warning to China Over Failure to Meet Busan Trade Deal Rare Earth Commitments

The United States has formally warned China that it must immediately fulfill its obligations under the Busan trade deal, saying Beijing is not living up to commitments to increase the supply of rare earths and other critical products to American buyers. The warning, reported by the Financial Times on November 6, marks a sharp escalation in Washington's frustration over what officials describe as persistent shortfalls in the flow of rare earth export licences from Chinese suppliers.

The Busan agreement, reached at an October 2025 meeting between Presidents Trump and Xi, saw China suspend export restrictions on critical minerals including gallium, germanium, antimony, and graphite in exchange for broader trade stabilization. Despite those pledges, U.S. officials say Chinese suppliers have in some cases refused to ship rare earths to American companies, with the problem having been raised repeatedly with Beijing over the past year. The trade truce under that framework was set to expire around November 10, adding urgency to the American demand.

The standoff carries significant stakes for U.S. industries dependent on Chinese rare earth materials, including semiconductor manufacturers and defense contractors. Washington's public ultimatum signals that the dispute has moved beyond quiet diplomatic channels and into open confrontation ahead of the truce's expiration deadline.