A new one-year US-China deal appears to be a direct trade-off: Chinese purchases of soybeans and a pause on rare earth curbs in exchange for US tariff cuts and a delay on tech restrictions.
The agreement, sealed by Presidents Trump and Xi, will see the US slash some tariffs and export controls. China, in turn, will buy US soybeans.
Crucially, China also agreed not to tighten restrictions on rare earth exports, averting a threatened 100% US import tax. In exchange, the US postponed a new measure for one year that would have blocked many Chinese firms from accessing US tech.
President Trump, calling the meeting “amazing,” announced plans for mutual state visits in the coming year. This signals a significant warming of diplomatic relations.
Speaking at the APEC forum in South Korea after the meeting, President Xi urged nations to “join hands” to protect global supply chains and practice “genuine multilateralism.