The US cleared the way to resume ethane exports to China on July 3, sending letters to producers Enterprise Products Partners and Energy Transfer rescinding a restrictive license requirement put in place just weeks ago, a sign that the US-China trade truce was on track, EDnews reports, citing Reuters.

The US had placed restrictions on ethane -- and a wide swathe of other exports -- to China in late May and early June after accusing Beijing of slowing shipments of rare earths vital to automakers and other industries.

Wednesday's letter lifting the license requirement comes after the United States and China resolved issues last week surrounding shipments of rare earth minerals and magnets to the US.

The Commerce Department took a first step toward rescinding the restrictions last week, sending letters to Enterprise Products, Energy Transfer, as well as ethane traders Satellite Chemical USA and Vinmar International, informing the companies they could load ethane on vessels destined for China but could not unload the ethane in China without authorization.