In a major step toward easing economic tensions, China has agreed to suspend key export controls on rare earth metals and halt investigations into US semiconductor firms, according to a fact sheet released by the White House on Saturday. The move is part of a broader trade pact reached this week between President Donald Trump and Chinese President Xi Jinping during their first in-person meeting of Trump’s second term.
Under the agreement, China will issue general export licenses for critical minerals including rare earths, gallium, germanium, antimony, and graphite. This effectively rolls back restrictions imposed in 2022 and 2025, which had threatened global supply chains for electronics, defense systems, and clean energy technology.
In return, the US will delay several planned tariffs on Chinese goods, including a threatened 100% tariff previously scheduled to take effect in November. Washington will also extend existing tariff exclusions until late 2026 and reduce a fentanyl-related tariff from 20% to 10% — with the possibility of removing it entirely if China strengthens enforcement against illegal drug exports.
China has also agreed to resume large-scale purchases of American agricultural products, including a minimum commitment of 25 million metric tons of soybeans annually for the next three years.
The deal offers temporary relief to markets rattled by years of escalating trade barriers, especially in industries reliant on rare earths and semiconductor components. It also clears the way for Dutch chipmaker Nexperia’s China-based facilities to restart shipments, helping prevent disruptions in the global auto sector.
However, analysts warn that the pact represents only a short-term truce. Many structural disputes — including technology access, national security concerns, and geopolitical tensions involving Taiwan and Russia — remain unresolved.
The TikTok ownership issue also hangs in the balance. While Trump has approved a plan for a US consortium to purchase the app’s American operations, Beijing has not yet signed off.
For now, the agreement signals a cooling period in the US–China trade war, but both sides face pressure to deliver deeper solutions before the temporary measures expire next year.