Core Viewpoint - The recent developments in the US-China trade relationship have led to a pullback in shares of rare earth and critical mineral companies, despite initial positive sentiment regarding a potential trade truce [2][4][10]. Industry Dynamics - The performance of rare earth and critical mineral companies is closely linked to the US-China trade relationship, particularly concerning Chinese export controls [2][3]. - China has announced a suspension of new export controls on rare earths, which had previously caused market concerns [5][6]. - The US government is expected to increase support for domestic production in response to China's tightening of supply [2][10]. Market Reactions - Following the announcement of the trade truce, shares of companies such as MP, US Rare Earths, and Critical Metals experienced significant declines, with drops of over 7%, 14%, and 15% respectively [9][10]. - The market had previously rallied on expectations of increased US support for domestic rare earth production due to China's export restrictions [10][11]. Geopolitical Context - The US government recognizes that China dominates approximately 90% of global rare earth production, prompting efforts to build domestic supply chains and collaborate with other countries like Australia [13]. - The recent trade developments are seen as a way to avoid further escalation in US-China relations while addressing supply chain vulnerabilities [12][13].