A major breakthrough in US-China trade relations has been achieved, with China agreeing to pause new rare earth curbs in exchange for the US slashing some tariffs. The one-year deal was finalized after a meeting between Presidents Xi and Trump.
President Trump confirmed that China had agreed not to tighten restrictions on exports of rare earths or the technology used to process them. This move averts a threatened 100% US import tax on the materials.
On the US side, the deal includes a reduction in some tariffs and export controls. Washington also agreed to postpone a new measure for one year that would have blocked thousands of Chinese firms from accessing US technology if they were partly owned by a sanctioned company.
Following the meeting, President Xi spoke at the APEC forum in South Korea. He called for “genuine multilateralism” and urged nations to “join hands rather than letting go” to protect global supply chains.
The positive outcome also includes planned state visits. Trump announced he would visit China in April, with Xi reciprocating with a visit to the US, possibly in Florida, at a later date.
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