China has put a one-year hold on new export restrictions for rare earth materials following talks between President Donald Trump and President Xi Jinping in South Korea. The decision brings temporary relief to global buyers and gives major economies additional time to address Beijing’s control over these critical materials.
The Chinese Ministry of Commerce announced Thursday that export controls first revealed on October 9 would be delayed for 12 months. At the same time, Washington agreed to postpone measures from September 29 that would have expanded restrictions on blacklisted companies and their majority-owned subsidiaries.
The fentanyl-related tariffs on Chinese goods will drop from 20% to 10% right away, Trump told reporters on Air Force One after leaving South Korea. This cuts the overall levy on Chinese exports to 47 percent from 57 percent.
Trump described his encounter with Xi as “amazing” and said “a lot of decisions were made.” He confirmed that the rare earth matter has been resolved through a one-year deal that will be renegotiated annually.
China agreed to increase efforts to stop fentanyl and will start buying American soybeans and other farm products again. Soybean futures in Chicago fell 1.6 percent following the news, while China’s rare earths industry index climbed more than 2 percent.
This marked the first face-to-face meeting between the two presidents in six years. Their conversation lasted one hour and 40 minutes at Gimhae Air Base in Busan reported live by Cryptopolitan.
In a statement carried by Chinese state media Xinhua, Xi pushed for “dialogue over confrontation” and stressed that both countries should keep up regular communication at working levels. The two sides agreed to boost cooperation on trade, energy and economic matters, and to make cultural and people-to-people exchanges easier.
Leaders’ meeting brings relief to anxious businesses
The Thursday gathering brought relief to many who have watched relations between the two countries worsen in recent months. According to Alex Hongcai Xu, who heads Beijing Honglve Consulting, whenever the two presidents sit down together, it helps reduce friction and builds a better climate for future discussions.
Xu explained that dropping import taxes to under 10% on both sides would help money and business partnerships flow more easily between the nations. He pointed out that China could purchase additional soybeans and Boeing aircraft from America.
Xu said he wishes Washington would let more Chinese companies set up operations in America, arguing this would create American jobs and increase local manufacturing while cutting down on imports from China.
However, Trump provided little information about whether America would welcome more Chinese business investments, only mentioning that China has existing investments and will continue investing.
Chinese companies have been looking for chances to expand internationally as their home economy slows down. Luke Li, who works in energy manufacturing and trade in Beijing, said more predictable American policies or the possibility of lower taxes would at least help Chinese businesses invest in other nations.
Li noted that any meeting between the leaders means movement forward, adding that Chinese businesses care most about whether American import fees will change.
Social media buzzes with optimism
As the two presidents met in South Korea Thursday morning, discussion about their summit became the number one trending topic on Weibo, China’s version of X. “Interest Rate Cut” ranked second, while another meeting-related topic took fourth place.
Most posts came from Chinese news organizations. User responses were short, including phrases like “long live China-U.S. friendship” and “China-U.S. mutual success.”
On Xiaohongshu, economist Song Qinghui wrote that he looks forward to a period of improved relations between the countries.
According to CNBC, Chinese government media initially gave little attention to the meeting, focusing instead on space program achievements. Coverage increased only after talks started. Beijing’s summary of Xi’s opening words said China stands ready to work with Washington, quoting Xi as linking China’s progress with Trump’s goal to “Make America Great Again.”
Xu criticized Trump’s approach, questioning whether America can achieve greatness if relations with China remain troubled.
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