The U.S. Trade Representative (USTR) accused China of violating a rare earth export agreement reached six months ago in Geneva, after Beijing announced sweeping new controls over the global supply of the critical minerals.

“China’s expansive rule to control the flow of rare earths is a repudiation of the U.S.-China agreement reached 6 months ago in Geneva,” the USTR’s statement read. “The Administration is prepared to take strong actions if China moves forward with this escalatory new regime.”

The Geneva accord, signed in May 2025, was designed to ease tensions by pausing U.S. tariff hikes in exchange for China maintaining license approvals on rare earth exports — materials essential for U.S. technology and defense manufacturing. For six months, both sides had observed the deal successfully until China’s new export restrictions were announced this week.

A video released by the USTR alongside the statement features a senior trade official outlining the agreement’s terms, stressing that Washington has “upheld its side” while accusing Beijing of abruptly reversing course.

However, Chinese analysts and state media argue the move was retaliatory, pointing to recent U.S. measures — including a September 29, 2025, rule that expanded the Entity List to cover affiliates 50% owned by already-listed Chinese firms, effectively blacklisting thousands of additional companies. Critics claim this U.S. policy shift broke the spirit of the Geneva pact first.

The dispute underscores the mounting trade and geopolitical friction between Washington and Beijing under President Donald Trump’s administration, with both sides now signaling a readiness to escalate further in a standoff that could disrupt global tech and defense supply chains.