Rare earths become the focus of U.S.-China trade disputes, with the U.S. calling for China to "fully and immediately" comply with the treaty
Rare earth exports and contract compliance remain the key focus of the trade dispute between the two sides.
Quick Look
- Treasury Secretary Bessent and Trade Representative Greer had a phone call with Chinese Vice Premier He Lifeng, urging Beijing to fully and immediately implement the 2025 trade agreement and expressing concerns about China's recent actions.
- Rare earth exports and contract compliance remain a key focus of the trade dispute between the two sides.
AI-generated summary
Why It Matters
After the United States and China raised tariffs on each other earlier in 2025, bilateral tensions have eased. In October 2025, Trump and Xi Jinping met during the Asia-Pacific Economic Cooperation in Busan, South Korea, and reached a trade agreement. The agreement requires China to continue to purchase U.S. soybeans in 2026 and until 2028, and agrees to suspend the implementation of new rare earth export control measures and issue general licenses for the export of related materials. The Busan Agreement was initially valid for one year and was later extended to January 10, 2027 during Xi Jinping's visit to the White House in September.
The progress of the implementation of the US-China trade agreement has attracted renewed attention. U.S. Treasury Secretary Bessent and Trade Representative Greer had a phone call with Chinese Vice Premier He Lifeng today, urging Beijing to fully and immediately implement its commitments in the 2025 trade agreement and expressing concerns about China's recent actions. Rare earth exports and China's compliance with the contract remain a key focus of the trade dispute between the two sides.
Agence France-Presse reported that the U.S. Treasury Department stated in a statement that Secretary Scott Bessent and Trade Representative Jamieson Greer had a phone call with Chinese Vice Premier He Lifeng. Bessent emphasized that the continued progress between the two sides depends on concrete results, and the United States will closely evaluate China's implementation of the agreement.
The statement refers to China's commitments made in October 2025. At that time, U.S. President Trump and Chinese President Xi Jinping met during the Asia-Pacific Economic Cooperation (APEC) in Busan, South Korea.
The agreement reflects an easing of bilateral tensions after the United States and China raised tariffs on each other earlier in 2025. The agreement requires China to continue purchasing U.S. soybeans in 2026 and until 2028.
China also agreed to suspend the implementation of new rare earth export control measures and issue general licenses for the export of related materials.
The Busan agreement was initially valid for one year, but during Xi Jinping's visit to the White House in September, the United States and China extended the trade truce until January 10, 2027.
Trade experts pointed out that the current core disagreement between the United States and China lies in the scale and extent of China's rare earth exports.
What to Watch
AI outlook — possibilities, not facts
The United States will closely evaluate China's implementation of the 2025 trade agreement and decide on its subsequent stance based on specific results.
Likely · Within weeks
Open Questions
- Will China fully and immediately implement its 2025 trade agreement commitments?
- What will be the specific scale and extent of China's rare earth exports?
- How will the United States evaluate China's implementation of the agreement?
