The crazy thing is that if it was the USA who had rare earths monopoly, then you can be sure they would have long deprived and sanctioned China from ever using any of their rare earths whatsoever, not even civilian Chinese companies would be allowed to use them, and that would have been non negotiable. Shows just how hostile the USA has turned towards China.
So any little concession or deal China makes is just to buy a bit more time and not completely cut off all trade ties, since the US Will only keep increasing sanctions on China with each passing month/year as China keeps growing. There is no turning back from that, except if China agrees to give up its development, growth and moving up the value chain, which we all know is unacceptable. So tensions are only going to increase with time not reduce unfortunately.