BUSINESS
A New Chapter in US-China Trade Relations
South KoreaSun Nov 02 2025
The US and China have taken a step back from their trade war. They have agreed to ease restrictions on some goods. This includes:
- Car chips
- Soybeans
- Rare minerals
- Drugs
The Meeting
The deal came after a meeting between President Xi Jinping and President Donald Trump in South Korea. The White House shared the details in a fact sheet.
Key Agreements
Car Chips
- China will now allow the export of car chips made by Nexperia, a Netherlands-based company with factories in China.
- Many car companies were worried about a chip shortage, which could have caused production problems.
Rare Earth Minerals
- China will pause restrictions on rare earth minerals.
- These minerals are used in various technologies, including cars, planes, and weapons.
Fentanyl
- The US will lower tariffs on fentanyl, a powerful drug responsible for many overdose deaths in the US.
- China will take steps to control the sale of chemicals used to make fentanyl.
Soybeans
- China has agreed to buy more US soybeans.
- They will buy 12 million tonnes by the end of 2025.
- They will buy 25 million tonnes each year after that.
- This is good news for US farmers.
The Bigger Picture
The deal is a big step, showing that the two countries can work together. However, there are still challenges ahead. The US says China can be an unreliable partner. Only time will tell if this deal will last.
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questions
What measures will China implement to ensure the resumption of trade from Nexperia's facilities, and how will these be monitored?
Will the easing of the chip ban mean that our cars will now come with built-in translation apps for Chinese and English?
What are the environmental and ethical considerations of increasing soybean exports to China, and how might they affect global food security?
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