US-China Deal Eases Chip, Rare Earth and Soy Trade
11/3/2025, 10:14:52 AM | China | United States | Japan & South Korea
Automotive
The US and China agreed to ease chip and rare-earth export controls, curb fentanyl-related chemical flows, and restore large-scale soybean purchases.
The White House announced a bilateral trade agreement after President Xi Jinping and President Donald Trump met in South Korea, outlining measures to ease several recent export controls and reduce trade tensions.
Beijing will begin to relax a ban on automotive computer chips, including steps to resume trade from Nexperia's facilities in China so production of critical legacy chips can flow to global auto supply chains. Nexperia, a Chinese-owned firm based in the Netherlands, had been flagged because shortages threatened temporary plant shutdowns at manufacturers such as Volvo, Volkswagen and Jaguar Land Rover.
China will also pause export controls on rare earth minerals for one year; these materials are essential in motors, electronics and defense systems. On controlled chemicals tied to fentanyl production, the two sides agreed on measures to curb flows while the US said it would lower certain tariffs intended to limit those imports.
Agriculture was addressed as well: China committed to buying 12 million tonnes of US soybeans in the final two months of 2025 and about 25 million tonnes annually for the following three years, restoring much of prior trade volume and easing pressure on farmers.
Officials described the package as a de-escalation of tariff-driven tensions and a step toward stabilising bilateral economic links.