China halts export ban on key materials to US amid tariff pause

China’s Ministry of Commerce announced on Sunday that it has suspended a ban on approving exports of “dual-use items” related to gallium, germanium, antimony, and super-hard materials to the US. The suspension will remain in effect from Sunday until November 27, 2026, according to the ministry’s statement.

The export ban, introduced in December 2024 amid broader trade control measures, was part of China’s effort to tighten oversight of strategic materials. Along with the suspension, the ministry also paused enhanced end-user and end-use checks on dual-use graphite exports to the United States, which had been imposed at the same time.

Earlier on Friday, China announced the suspension of export controls imposed on October 9, including extended restrictions on certain rare earth materials and lithium battery components. These steps follow recent trade discussions between President Xi Jinping and US President Donald Trump, during which both leaders agreed to reduce tariffs and suspend other trade measures for one year.

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Manufacturing slowdown highlights economic strain

China’s manufacturing sector continued to weaken, contracting for the fourth consecutive month in August, as official data showed. The downturn coincides with intensified tariff pressure from the US and slowing domestic demand.

Washington has so far imposed tariffs on $250 billion worth of Chinese goods, while Beijing retaliated with tariffs on $110 billion worth of US products, including soybeans and apples. According to the National Bureau of Statistics (NBS), the Purchasing Managers’ Index (PMI) fell to 49.5 in August, down slightly from 49.7 in July. The figure remains below the 50.0 mark that separates expansion from contraction, narrowly missing economists’ forecast of 49.6, as surveyed by Bloomberg.