A new one-year trade agreement between Washington and Beijing hinges on key commodities: rare earths and soybeans. The deal was sealed after a meeting between President Trump and President Xi, which Trump labeled “amazing.”
China agreed to purchase US soybeans and, critically, to halt any new restrictions on the export of rare earths or the technology to process them. This commitment directly addresses a major US concern, leading Trump to back off threats of a 100% import tax on the materials.
In return, the United States committed to slashing some tariffs and export controls that had been placed on China. This mutual concession aims to stabilize the volatile trade relationship between the two world powers.
The agreement also includes a significant one-year delay on a restrictive US technology measure. This rule, which China strongly opposed, would have prevented thousands of Chinese companies from using US tech if they were partly owned by a sanctioned entity.
Fresh off this meeting, President Xi spoke at the APEC forum in South Korea. He championed multilateral trade and warned against “breaking supply chains,” calling on nations to “join hands” to ensure global economic stability and “peace of mind.”