China said on Wednesday (November 5, 2025) it would extend a suspension of additional tariffs on U.S. goods for one year, making official an agreement reached in talks between presidents Xi Jinping and Donald Trump last week.

The two leaders held talks in South Korea at the end of October that effectively prolonged a delicate truce for a year, after several rounds of trade negotiations in recent months.

A statement published Wednesday (November 5, 2025) on the Ministry of Finance website, citing Beijing’s State Council, said that “for one year the 24 percent tariff on US goods will continue to be suspended, (and) a 10 percent tariff on US goods will remain”.

The statement said the pause follows “the consensus reached in the China-US economic and trade consultations” and would be effective from November 10.

Mr. Trump on Tuesday (November 4, 2025) formalised an agreement that Washington would cut its additional tariffs on Chinese imports from 20% to 10%, also effective from November 10.

Temperatures have spiked between the world’s two biggest economies this year as Washington and Beijing imposed escalating tariffs on each other’s products.

At one point, duties on both sides reached prohibitive triple-digit levels, hampering trade.

The two have been engaged in an uneasy truce since, as top economic leaders met several times for talks in recent months, with tensions surging over export controls and other issues.

Beyond the statement covering the blanket tariffs, China also published several statements on Wednesday (November 5, 2025) suspending related measures hitting different sectors.

In one of them, China said it would “cease implementing the additional tariff measures” imposed in a March order hitting a list of American farm products.

That move was a response to Mr. Trump doubling additional tariffs on Chinese goods over Beijing’s handling of fentanyl — now back to 10% starting next week.

Beijing had placed an additional 15% levy on chicken, wheat, corn and cotton imported from the U.S. and an additional 10% tariff on American soybeans, pork, beef, dairy and other farm products.

That had hurt a key source of Mr. Trump’s political support: farmers.

More than half of U.S. soybean exports went to China last year, but Beijing halted all orders as the trade dispute deepened.

‘Thawing ties’

In a sign of thawing ties, Chinese Vice-Commerce Minister and key negotiator Li Chenggang hailed “important” agricultural trade links between the countries during a Tuesday (November 4, 2025) meeting in Beijing with representatives from the U.S. farming sector.

“It is hoped the United States can work with China, look at the big picture, create favourable atmosphere for pragmatic cooperation on agriculture and other areas,” Mr. Li said at the meeting, according to a Wednesday (November 5, 2025) statement by China’s Commerce Ministry.

Beijing’s Commerce Ministry also announced Wednesday (November 5, 2025) that it would extend suspensions to export control measures on U.S. entities that had been implemented during the tit-for-tat escalation with Washington earlier in the year.

In another statement, the Ministry said that restrictions would continue to be suspended for dozens of U.S. defence and aerospace firms.

Those measures had been aimed at limiting U.S. access to “dual use” items that could be used for both civilian and military purposes.

Also following talks, Beijing agreed to halt for one year restrictions on the export of rare earths technology.

Rare earths are a strategic field dominated by China and are essential for manufacturing in defence, automobiles and consumer electronics.

Washington in turn agreed to suspend for one year a move imposing “Entity List” export restrictions on affiliates of blacklisted foreign companies in which they had at least a 50 percent stake, the Chinese Commerce Ministry said.

The United States also said it would halt for a year measures targeting China’s shipbuilding industry that led to both sides applying port fees against each other’s ships, it said.

In turn, China would suspend its “countermeasures” after the US action, they added, for one year too.

Published – November 05, 2025 08:08 pm IST

President Donald Trump said Monday (October 20, 2025) that the U.S. commands “great respect” from Beijing and that he will reach a “fantastic deal” with Chinese President Xi Jinping when the two leaders meet soon.

Mr. Trump’s remarks come after Beijing infuriated him by expanding export controls on rare earth products that are used in smartphones, fighter jets, electric vehicles and more. Mr. Trump spoke as he hosted Australian Prime Minister Anthony Albanese at the White House, celebrating an agreement with the U.S. ally as a potential counterpoint to China’s near-monopoly in processing those critical minerals.

“I think we’re going to end up having a fantastic deal with China,” Mr. Trump said. “It’s going to be a great trade deal. It’s going to be fantastic for both countries, and it’s going to be fantastic for the entire world.”

When asked about China’s leverage, Mr. Trump said Beijing “threatened us with rare earths, and I threatened them with tariffs.” But he insisted his good relationship with Mr. Xi means they would work out ”a very fair deal.”

All eyes are on a potential meeting between Mr. Trump and Mr. Xi because any failure to reach some agreement raises the risk of destabilizing not only relations between the two superpowers but also the global economy.

Mr. Trump affirmed that he would meet with Mr. Xi this month on the sidelines of the Asia Pacific Economic Cooperation summit, a grouping of 21 economies. Beijing has not announced plans for Mr. Xi to make the trip to South Korea, but it’s not unusual for such details to emerge closer to the travel date.

The President has threatened to impose a new 100% tariff on China in response to Beijing’s expanded rules on rare earth products. And he said Monday that it has already had results.

“Now, they’re treating us with great respect,” Mr. Trump said. “Now, we’ll see what happens. I said, if we don’t make a deal, I’m putting on an additional 100% on November 1. I think we’ll make a deal.”

Since returning to the White House, Mr. Trump has levied additional 30% across-the-board tariffs on China. Mr. Trump said the total rate on Chinese goods is about 55% to 57% and the country has paid the U.S. “hundreds of billions of dollars worth of money for tariffs.”

Beijing, however, has indicated it would play hardball.

“Threatening high tariffs is not the right way to deal with China,” Lin Jian, a spokesperson for the Chinese foreign ministry, said last week in response to Trump’s new tariffs threat.

At the meeting with Albanese, Trump said he has other options to use against China: “They can’t get parts for their airplanes. We build their airplanes.”

Still, he said he prefers reaching a deal. “I want to be good to China. I love my relationship with President Xi,” Mr. Trump said.

Meanwhile, Li Chenggang has been ousted as China’s top trade negotiator after co-leading the last four rounds of talks with the U.S. In a routine, bullet-style announcement of removals and appointments, Beijing said Monday that Li was removed from his post as China’s permanent representative to the World Trade Organization. No reason was given.

He was replaced by Li Yongjie, deputy international trade representative, who recently held trade talks with Ecuador.

The announcement coincided with Treasury Secretary Scott Bessent’s recent criticisms of Li Chenggang. At a press conference last week, Bessent made a rare public airing of displeasure, saying Li “showed up here with very incendiary language on August 28,” has “gone rogue” and was “very disrespectful.”

“He showed up uninvited in Washington and said, quote, China will cause global chaos if the port shipping fees go through,” Mr. Bessent said, referring to the U.S. plan to charge port fees on China-linked vessels.

Late last week, Chinese Vice Premier He Lifeng had a video call with Mr. Bessent and U.S. Trade Representative Jamieson Greer. The sides held a “candid, in-depth and constructive exchange” and agreed to hold a new round of trade talks as soon as possible, according to China’s official Xinhua news agency.

Mr. Bessent said last week that he and his Chinese counterpart would likely meet in Malaysia soon to prepare for a leaders summit.

Published – October 21, 2025 04:27 am IST

U.S. President Donald Trump (L) with China’s President Xi Jinping. File.
| Photo Credit: Reuters

China on Thursday (October 16, 2025) defended its oil imports from Russia as legitimate and lawful, warning the United States that it would take “firm countermeasures” if it imposed unilateral sanctions affecting Beijing’s interests.

The U.S.’ approach amounted to unilateral bullying and economic coercion, which severely undermines international trade rules and threatens the security and stability of global industrial and supply chains, Chinese Foreign Ministry spokesperson Lin Jian told a media briefing in Beijing.

China’s normal trade and energy cooperation with countries around the world, including Russia, is legitimate and lawful, Mr. Lin said, responding to a question on U.S. President Donald Trump’s claim that Prime Minister Narendra Modi has assured him of not buying oil from Russia, and it was now time for China to do the same.

Mr. Trump told reporters in Washington on Wednesday (October 15) that the U.S. was “not happy” about India’s purchase of Russian crude, arguing such imports helped finance President Vladimir Putin’s war in Ukraine.

“Mr. Modi assured me today that they will not be buying oil from Russia. That’s a big step. Now we’ve got to get China to do the same thing,” he said.

Mr. Lin said China has always maintained an objective and fair stance on the Ukraine crisis, and its policy is open and above board for all to see.

“We firmly oppose the U.S.’ action of directing the issue at China, and we strongly oppose imposing illegal unilateral sanctions and long-arm jurisdiction on China,” he said.

“If China’s legitimate rights and interests are harmed, we will take firm countermeasures to safeguard our sovereignty, development, and security interests,” Mr. Lin said.

India is the second-largest buyer of Russian fossil fuels behind China, according to the Centre for Research on Energy and Clean Air (CREA).

U.S. Treasury Secretary Scott Bessent recently said China buys 60% of Russian energy. Besides oil, Russia also source most of its gas supplies from Russia through cross-border pipelines.

Reacting to Mr. Bessent’s comments that Beijing’s rare earth export curbs amounted to “China versus the world” and that the U.S. will speak with its allies to prepare a “fulsome group response”, Mr. Lin said the measures are in line with international common practice.

They are aimed at better safeguarding world peace and regional stability and to fulfil non-proliferation and other international obligations, he said.

China, which virtually holds a monopoly over the rare earth materials, recently announced further export controls for mining and processing the minerals, alleging that unnamed foreign firms are using its supplies for military purposes.

Beijing’s move angered Mr. Trump, who threatened 100% tariffs against Chinese goods.

“We’re going to be speaking with our European allies, with Australia, with Canada, with India and the Asian democracies,” Mr. Bessent told CNBC on Wednesday (October 15).

“And we’re going to have a fulsome group response to this because bureaucrats in China cannot manage the supply chain or the manufacturing process for the rest of the world,” he added.

China accounts for about 70% of the world’s rare earth mining and nearly 90% of processing, making it the main supplier of the precious metals used in automobile, electronics, renewable energy, and defence industries.

China’s rare earth metals are much in demand as the U,S., the European Union, and India are its top importers.

Separately, Commerce Ministry spokesperson He Yongqian said Beijing remained open to resolving trade issues with Washington through dialogue.

Asked whether China would hold a new round of economic and trade talks before the upcoming Asia-Pacific Economic Cooperation (APEC) meeting in South Korea, he said Beijing has always maintained an open attitude toward equal consultations based on mutual respect.

Published – October 16, 2025 06:29 pm IST