China is ending the Rare Earths Controls and Chip Investigation.

Trade Agreement Easing Tensions between China and the U.S.

The White House released an important information note on Saturday, following a historic summit between U.S. President Donald Trump and Chinese Leader Xi Jinping. This trade agreement aims to reduce tensions between the world's two largest economies.

Rare Earth Elements and Export Licenses

According to the new agreement, China will issue general licenses for the export of rare earth elements, gallium, germanium, antimony, and graphite. This indicates the effective removal of controls that were implemented between April 2025 and October 2022.

Washington also announced that Trump would suspend part of the reciprocal tariffs on China for another year, halting the previously proposed 100% tariff plan that was raised in November. These measures have provided relief in the markets.

Halting Trade Wars

The face-to-face meeting between Trump and Xi took place during a period when trade wars were shaking the markets. The leaders took significant steps to stabilize the relationship in the short term.

China's Threats and U.S. Response

According to the White House, China agreed to halt comprehensive controls over rare earth magnets, in exchange for the U.S. committing to withdraw restrictions on Chinese companies. China had threatened to restrict the flow of these minerals to the U.S. and its allies, leveraging its dominance in the processing of rare earth minerals.

Agricultural Purchases and Fentanyl Regulations

The U.S. agreed to reduce the customs tax on fentanyl from 20% to 10%, while China will resume purchases of American soybeans and other agricultural products. Under this agreement, China is expected to buy 12 million tons of soybeans this season and at least 25 million tons annually over the next three years. Trump stated that if pressure continues on fentanyl and the chemicals used in its production, all customs tariffs could be lifted.