Easing of China-US Relations: Export Controls Suspended

Historic Trade Agreements between China and the USA

The White House announced that China's additional export controls on rare earth metals have effectively been suspended and that investigations against US companies regarding the semiconductor supply chain will come to an end.

Statement from the White House

In a statement made on Saturday, details of the trade agreement signed by US President Donald Trump and Chinese leader Xi Jinping were shared. This agreement aims to reduce tensions between the world's largest economies, and China will grant general licenses for the export of rare earth elements, gallium, germanium, antimony, and graphite to end users in the US and suppliers around the world.

Important Trade Steps

Both the US and China stated that the more restrictive controls announced for October 2025 have been suspended for one year. According to US officials, as part of this framework, antitrust and monopoly investigations against many US chip companies, including Nvidia Corp. and Qualcomm Inc., will also be concluded.

Customs Duty Regulations

Additionally, Washington will suspend some of the customs duties that Trump imposed on China for another year and will halt plans to impose a 100% customs duty scheduled for November.

Long-Term Situation

The White House announced that the duration of certain customs duty exemptions will be extended until November 10, 2026. US Treasury Secretary Scott Bessent argued that despite the agreements, the US and its allies should remain cautious against China. Bessent emphasized that the rare elements issue has been ongoing for a long time and stated, “The Chinese have cornered the market.”