Donald Trump has declared that the United States and China have reached a “great success” in trade talks, claiming Beijing has agreed to resume large-scale purchases of US soybeans, maintain rare earth exports, and curb the illicit flow of fentanyl.
The announcement followed Trump’s meeting with Chinese President Xi Jinping on the sidelines of the APEC summit in South Korea. The US president said the two leaders had struck an initial one-year framework deal aimed at reducing trade tensions that have roiled global markets for months.
Under the agreement, the US will lower tariffs on Chinese imports to 47 percent from 57 percent, while China will continue supplying rare earth elements — critical for electric vehicles, defence, and high-tech manufacturing — without any export restrictions. Trump said the accord could be extended beyond its first year.
“This was a great success,” Trump told reporters aboard Air Force One on his way back to the US. He said he would visit China in April for further talks, with Xi expected to make a return visit to the US later in the year. “The rare earths issue has been settled, and there’ll be no more roadblocks,” he said.
The rare earth supply chain has been one of the most sensitive flashpoints in the ongoing US-China rivalry. China controls more than 70 percent of global production and had previously threatened to restrict exports amid rising tensions. The assurance to keep exports flowing is seen as a significant concession from Beijing, easing fears of disruption to global manufacturing.
Markets reacted swiftly to the development. Chinese equities surged to a 10-year high, while the yuan strengthened to a near one-year peak against the dollar. Investors viewed the breakthrough as a potential turning point after months of uncertainty that have disrupted supply chains and dented business sentiment.
Beijing has yet to issue an official statement confirming Trump’s claims. Analysts said Chinese authorities may be assessing the details before making any announcement. Meanwhile, one major issue remains unresolved — the forced sale of TikTok’s US operations, which Washington had been pushing for ahead of the talks.
While details of the new trade framework remain sketchy, Trump’s comments signal a thaw in relations between the world’s two largest economies, which have been locked in a cycle of tariffs, technology bans, and investment restrictions. If finalised, the deal could offer a short-term reprieve to global markets and commodity exporters — particularly US soybean farmers who were among the hardest hit during the earlier trade war.
For India and other emerging markets, a reduction in US-China tensions could bring some relief to supply chains and commodity prices, even as competition in the technology and manufacturing sectors continues to intensify.
