China reveals outcome of key US trade talks
China has agreed to suspend its latest rare earth export controls in exchange for reciprocal US cuts on tariffs and restrictions, the Chinese Commerce Ministry said in a statement published on its website on Thursday. Beijing's earlier limits on the critical materials remain in place.
The agreement followed a face-to-face meeting between Chinese President Xi Jinping and his US counterpart Donald Trump in South Korea, as well as economic and trade delegation talks in Kuala Lumpur.
“China will suspend the implementation of relevant export control measures announced on October 9 for one year, and will study and refine specific plans,” the ministry’s statement reads.
Beijing’s restrictions on rare earth mineral exports with dual military use were seen as a response to Washington’s curbs on advanced semiconductors and chipmaking equipment introduced beginning in late 2022, culminating in the Dutch government’s seizure of Chinese owned chipmaker NeXperia in September under US pressure.
China dominates in extraction and processing of rare earth minerals, which are critical for most modern technology from cellphones to missiles.
Under the deal, Washington has agreed to suspend its recent rule expanding export restrictions to any business at least 50% owned by any entity on its “entity list,” the Chinese ministry said.
The US will also suspend its investigation measures targeting Beijing’s maritime, logistics, and shipbuilding industries, and lower fentanyl-related and reciprocal tariffs.
Beijing will adjust its retaliatory measures in response, the statement added.
Trump praised a “great meeting” with Xi, and said that China had agreed to resume purchases of US soybeans and other agricultural products paused during the countries’ recent trade stand-off.
The new US-China deal appears to leave older trade restrictions in place.
