US-China Rare Earths Truce: Will Trump and Xi Extend It Thursday — and What It Means for Semiconductors and Defense Stocks

# US-China Rare Earths Truce: Will Trump and Xi Extend It Thursday — and What It Means for Semiconductors and Defense Stocks

> **Quick answer:** A US-China rare earths truce, struck in October 2025, is currently the only thing preventing China from halting exports of materials critical to semiconductor chips, F-35 fighters, Tomahawk missiles, and electric vehicles. Thursday's Trump-Xi bilateral in Beijing is the live decision point for extension. If the truce holds, chip and defense stocks get breathing room. If it collapses, NVDA, INTC, AMD, RTX, and LMT face an acute supply shock. This article breaks down exactly what's at stake — and what investors should watch for.

The US-China rare earths truce reaches its most consequential test yet Thursday, May 14, when Presidents Trump and Xi meet bilaterally in Beijing. The truce — a side deal to the broader October 2025 trade agreement in which Washington eased certain tariffs and Beijing suspended rare earth export restrictions — is not permanent. It is a handshake with an expiration date. And the handshake is being renegotiated today.

For investors holding semiconductor or defense names, this is not background noise. Rare earths are the physical backbone of the technologies that make those companies' products possible. The math is stark: China controls roughly **70% of global rare earth mining and 90% of separation and processing**, according to the Center for Strategic and International Studies. That processing monopoly is where Beijing's real leverage lives.

*This article is for informational purposes only and does not constitute financial advice. Consult a qualified financial advisor for personal financial decisions.*

## What the Rare Earths Truce Actually Is — and Why It Exists