At their first meeting since 2019, U.S. President Donald Trump and Chinese President Xi Jinping reportedly made progress on several key issues in the ongoing trade dispute. Speaking in Busan, South Korea, President Trump announced an immediate reduction of tariffs on Chinese goods. In return, Beijing pledged to crack down more effectively on the illegal trade of the opioid fentanyl, resume purchases of U.S. soybeans, and suspend the tightening of its rare earth export controls.
On October 9, China imposed export restrictions on this critical group of raw materials, with plans to further tighten them in the coming months, covering 12 of the 17 rare earth elements as well as related processing technologies. According to China’s Ministry of Commerce, these planned new measures will now be suspended for one year. However, the restrictions already in place since April remain valid, meaning that supply chains for the affected rare earths, including dysprosium and terbium, are likely to stay tense.
Trump said that a trade agreement between the two nations could be signed soon. In April, the President is expected to travel to Beijing for further talks, followed by a visit from Xi Jinping to the United States. The dialogue between the two major powers has thus been reestablished.
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