China has temporarily issued export licenses to the top three American automakers' rare-earth suppliers as supply chain disruptions from Beijing's export restrictions on those minerals start to show.
The amount and goods covered by the approval were not immediately apparent, nor was it obvious if the action indicated China was getting ready to streamline the rare-earths licensing procedure, which industry associations claim is onerous and has resulted in a supply bottleneck.
Global supply chains for automakers, aerospace manufacturers, semiconductor businesses, and military contractors have been disrupted by China's decision in April to limit shipments of a variety of rare earths and related magnets.
China is increasingly seen as using its control over the vital mineral sector, which is essential to the green energy revolution, as leverage in its trade conflict with US President Donald Trump.
As their reliance on China for such parts, auto industry groups have warned of growing production concerns. China produces around 90 percent of the world's rare earths.
Suppliers of three major American automakers—Ford, General Motors, and Jeep—were granted permission to export rare earth elements.
Trump's criticism of Beijing, which he claims has broken the truce last month to lift trade curbs and tariffs, has turned to China's export limitations on vital minerals.
To resolve trade issues, Trump and Chinese President Xi Jinping spoke on the phone for a long time on Thursday. According to Trump's social media statement, "there should no longer be any questions respecting the complexity of Rare Earth products."
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The permission for the auto suppliers comes after a U.S. electronics firm's suppliers received a green light last week, and a U.S. non-car company's suppliers received another one earlier this week.