Busan [South Korea], October 30 (ANI): US President Donald Trump on Thursday announced that the long-standing dispute over China's rare earth exports has been 'settled,' marking a key breakthrough in easing trade tensions between Washington and Beijing.

Speaking to reporters aboard Air Force One following his meeting with Chinese President Xi Jinping in South Korea, Trump said, 'All of the rare earth has been settled, and that's for the world.'

He added, 'That roadblock is gone now... There's no roadblock at all on rare earth. That will hopefully disappear from our vocabulary for a little while,' noting that the US would continue its purchase and production of these critical materials.

China holds a near monopoly on the global supply of rare earth elements, essential for manufacturing advanced technologies such as smartphones, electric vehicles, and defense systems. The issue has been a central flashpoint in recent trade disputes between the two nations.

Earlier this month, Beijing had tightened export controls on rare earths in response to Washington's expansion of technology export restrictions, reigniting tensions between the two powers.

The tit-for-tat measures led to uncertainty in global supply chains, which began to ease following trade discussions in Malaysia over the weekend.

US Trade Representative Jamieson Greer confirmed that Trump and Xi 'came to an understanding' during their talks, stating that Beijing would not 'impose the rare earth controls that they proposed.'

However, it remains unclear whether all of China's restrictions will be lifted.

Trump's announcement came as he wrapped up his multi-nation Asia tour, which saw several diplomatic and economic milestones.

Air Force One departed from Gimhae International Airport around 1:15 p.m. local time on Thursday, marking the end of his visit.

Throughout the trip, Trump pursued a series of deals aimed at bolstering US engagement in the Indo-Pacific.

In Malaysia, he witnessed the signing of a peace declaration between Thailand and Cambodia.

Later, during his stop in Japan, he and Prime Minister Sanae Takaichi signed a critical minerals agreement, which they described as the start of a 'new golden age' in bilateral ties.

In South Korea, Trump met President Lee Jae Myung and finalised the details of a trade accord, while his high-profile talks with Xi were expected to lay the groundwork for a broader trade framework between the US and China. (ANI)