A new one-year trade deal has been forged between the US and China, with both President Donald Trump and President Xi Jinping praising the talks and scheduling future visits. Trump, who called his meeting with Xi “amazing,” will visit China in April, with Xi visiting the US later.
The agreement marks a significant pause in the trade war. The US has agreed to slash some tariffs and export controls. In a major development, China agreed to pause new restrictions on rare earths, a sector Trump had threatened with 100% tariffs.
In return for the US concessions, China also agreed to purchase American soybeans. Furthermore, the US committed to postponing a new measure for one year that would have blocked many Chinese firms from accessing American technology.
Following the meeting, President Xi addressed the APEC forum in South Korea. He used the platform to advocate for open trade, warning against “breaking supply chains” and urging nations to “join hands rather than letting go.”
Xi stressed the need for “genuine multilateralism” and urged his and Trump’s teams to complete follow-up work on the deal as soon as possible. He said the goal was to achieve results that provide “peace of mind” to the entire world.