The Rare-Earth Fight Imperiling US-China Trade Peace, Explained

Markets cheered in early May when the US and China agreed in Geneva to lower tariffs and other barriers. But after a few weeks, the shine started to come off that deal, with China accusing the US of violating it with new restrictions and the US saying China failed to honor promises on rare earths.

What is the background to the rare earths spat?

The Chinese Ministry of Commerce announced April 4 it would start requiring companies to apply for a license before exporting seven types of rare earths: samarium, gadolinium, terbium, dysprosium, lutetium, scandium and yttrium.

The rule also ...