US China Trade Talks Continue: Rare Earth Deals and Tax Discussion

The latest round of US-China trade talks has brought renewed attention to one of the most important economic relationships in the world. Senior officials from both countries met on the sidelines of the ASEAN Summit in Kuala Lumpur. 

They worked to shape a potential agreement focused on easing tensions that have fueled concerns of a prolonged trade war. 

The discussions showed signs of cautious progress, especially around trade deals, rare earth minerals, and tariffs that could play a significant role in global technology and manufacturing industries.

Framework for a New Trade Understanding

US Treasury Secretary Scott Bessent confirmed that both sides have managed to outline a new framework designed to prevent further escalation. 

The proposal will be presented to US President Donald Trump and Chinese President Xi Jinping during their meeting at the APEC Summit in South Korea later this week.

Bessent noted that the United States is moving away from a planned increase to 100% tariffs on Chinese imports, which were originally scheduled to begin on November 1. 

In turn, China is expected to postpone the introduction of a stricter licensing system targeting exports of rare earth minerals and magnets, a critical component for many high tech products.

Chinese officials were more reserved, describing the outcome as a preliminary consensus pending further internal approvals, yet they acknowledged constructive and persistent discussions.

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Why Rare Earth Minerals Matter

China controls more than 90% of the global supply of rare earth materials, which are essential for electric vehicles, semiconductors, consumer electronics, and even military applications. Any disruption to these exports could have a wide impact on industries worldwide.

By softening restrictions, China may help maintain a stable supply chain as negotiations continue. US officials say this step is necessary to restore confidence in American manufacturers and reduce long standing vulnerabilities in critical technologies.

Trade Representative Jamieson Greer further stated that both sides reached clarity on more access to rare earths for US companies as part of the current negotiation.

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Tariffs and Market Access Still Under Review

While both countries are attempting to avoid another spike in tariffs, US officials also expect China to resume buying major US agricultural products this season. 

Soybeans, a key export, have been at the center of the trade dispute after China shifted purchasing toward South America.

If the purchases resume as expected, US farmers could see stronger demand in the coming seasons. Trump said he believes a deal is within reach and expressed optimism about future cooperation.

However, China has not yet confirmed the leaders’ meeting schedule, urging patience and reminding that the talks remain sensitive.

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Technology and Broader Negotiation Points

Beyond rare earth discussions, officials also covered additional topics relevant to the modern global economy. These include:

• The transfer of TikTok to US ownership control
   

• Port entrance fees for US shipping interests
   

• The ongoing opioid crisis tied to fentanyl trafficking
   

• Trade imbalance concerns
   

• Regional geopolitical issues such as Taiwan

Trump also indicated he would look for China’s support in broader international matters, including Russia’s war in Ukraine.

This wide range of topics shows that the negotiation stretches beyond traditional goods-focused trade war disputes, reflecting the growing complexity of US-China economic relations.

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Cautious Optimism Ahead of APEC Summit

With tensions rising in recent weeks due to sanctions and export restrictions from both sides, even a temporary easing of measures may bring relief to businesses wary of another escalation. Officials expect the current tariff truce to extend beyond its November 10 expiration date.

The world will be watching closely when Trump and Xi meet in South Korea. Any agreement will guide the future development of US China negotiation strategies and could influence global markets that rely heavily on predictable trade conditions.

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FAQ

What are the key points of the latest US China trade talks?

The main topics include delaying new tariffs, easing rare earth export restrictions, and increasing US agricultural exports to China.

Why are rare earth minerals important?

They are essential for high technology manufacturing, including electric vehicles, microchips, smartphones, and defense systems.

Will tariffs be removed completely?

Tariffs are expected to be paused and may be reduced if negotiations progress, but no permanent removal has been confirmed.

When will Trump and Xi meet?

They are scheduled to meet during the APEC Summit in South Korea, pending China’s final confirmation.

Is the trade war over?

No final resolution has been reached. The latest agreement aims to reduce the risk of immediate escalation while discussions continue.