Key Points
- China confirmed a new trade agreement with the U.S. following a phone call between Trump and Xi, ending a recent standoff.
- China pledged to supply rare earth elements, while the U.S. agreed to continue allowing Chinese students to study at American universities.
- The U.S. will impose 55% tariffs on certain Chinese imports, combining several existing and new levies.
- Specific terms of the deal remain unclear, especially regarding enforcement and licensing for critical mineral exports.
China on Thursday confirmed the existence of a new trade deal with the United States, following an announcement by former U.S. President Donald Trump. The deal marks a truce in the ongoing trade tensions between the world’s two largest economies.
Chinese Foreign Ministry spokesperson Lin Jian emphasized that China honors its commitments. “China has always kept its word and delivered results. Now that a consensus has been reached, both sides should abide by it,” Lin said during a regular press briefing.
The agreement comes after a key phone conversation between Trump and Chinese President Xi Jinping last week. Their dialogue broke a recent deadlock that had emerged following preliminary negotiations in Geneva. Talks had stalled over China’s restrictions on the export of critical minerals, prompting the Trump administration to impose new export controls on semiconductor software, jet engines, and other high-tech goods destined for China.
However, after the Trump-Xi call, follow-up meetings in London reportedly solidified the terms initially discussed in Geneva. The result is what the U.S. has described as a more comprehensive framework for cooperation, particularly in reducing tariffs and improving access to essential resources.
Trump, speaking on his social platform Truth Social, praised the deal. “Our deal with China is done, subject to final approval with President Xi and me,” he said. According to Trump, China has agreed to supply the U.S. with rare earth elements and magnets. At the same time, the U.S. will permit Chinese students to continue their studies in American institutions. He also noted that the U.S. will impose a total of 55% in tariffs on Chinese goods, compared to China’s 10% on U.S. imports.
Despite the optimistic tone, many details remain unclear, including how the agreement will be enforced and what specific concessions each side has made. China’s commerce ministry declined to specify how many export licenses for rare earth materials would be issued but expressed openness to ongoing dialogue on export controls.
