Did Trump and Xi Just Make a Game-Changing Rare Earth Deal?
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Synopsis
In a groundbreaking development, U.S. President Donald Trump and Chinese President Xi Jinping have forged a significant one-year deal regarding rare earth supplies. This agreement marks a hopeful turn in U.S.-China relations, promising to reduce trade tensions that have long affected both economies.
Key Takeaways
- One-year agreement for rare earth materials reached.
- Annual renewal of the deal is planned.
- Reduction of fentanyl-related tariffs from 20% to 10%.
- Both leaders emphasized the importance of cooperation.
- Future visits between Trump and Xi are anticipated.
Busan, Oct 30 (NationPress) In a pivotal move to alleviate ongoing trade conflicts, U.S. President Donald Trump declared on Thursday that he and Chinese President Xi Jinping have reached a one-year agreement concerning the supply of essential rare earth materials.
This announcement followed their meeting in Busan, South Korea, during the 32nd APEC Economic Leaders’ Meeting—their first face-to-face interaction in six years.
Trump indicated that this agreement will be subject to annual renewal, marking a significant advancement in the strained trade dynamics between the two nations.
“All the rare earths have been settled, and that’s for the world,” Trump communicated to reporters aboard Air Force One post-meeting.
Additionally, he revealed that he has consented to lower fentanyl-related tariffs on China from 20% to 10%, rating his meeting with Xi as “a 12 out of 10.”
Trump remarked, “A lot of things we brought to finalization,” and commended the Chinese President as “a tremendous leader of a very powerful country.”
He also disclosed his plans to visit China in April, while Xi is anticipated to journey to the U.S. later, possibly to Florida, Palm Beach, or Washington, D.C.
In a conciliatory approach, Xi expressed that China’s growth aligns with Trump’s 'Make America Great Again' vision.
During their discussions, Xi stated that the U.S. and China can mutually aid each other in “succeeding and prospering together.”
“China and the United States should be partners and friends. That is what history has taught us and what reality necessitates,” Xi remarked, adding that he is prepared to collaborate with Trump to enhance bilateral relations and foster a constructive environment for both nations.
The rare earth agreement is viewed as a significant breakthrough amidst a prolonged trade deadlock characterized by reciprocal tariffs.
Previously, both parties had been negotiating a framework that would permit China to postpone stricter export controls on rare earth materials for a year, in return for the U.S. abandoning plans to impose an additional 100% tariff on Chinese products effective November 1.
Point of View
It is clear that this agreement on rare earth materials is a vital step towards reducing trade tensions. This deal not only reflects the evolving dynamics between two major global powers but also emphasizes the importance of cooperation for mutual growth and prosperity.
NationPress
31/10/2025
Frequently Asked Questions
What was the purpose of the Trump-Xi meeting?
The meeting aimed to discuss trade relations and the supply of rare earth materials, ultimately leading to a significant one-year deal.
How will the rare earth deal affect trade relations?
The deal is expected to ease trade tensions by providing a framework for cooperation and reducing tariffs, fostering a more positive relationship between the two nations.
What are rare earth materials?
Rare earth materials are a group of 17 elements crucial for various technologies, including electronics, renewable energy, and defense systems.
When are Trump and Xi expected to meet again?
Trump plans to visit China in April, while Xi is expected to travel to the U.S. later, either to Florida, Palm Beach, or Washington, D.C.
What impact does this agreement have on global markets?
The agreement is likely to stabilize global markets that rely on rare earth materials, promoting investor confidence and encouraging international trade.
