US and China Agree on Trade Deal to Ease Rare Earth Tensions
The United States and China have reached a new trade framework to reduce tension between the two countries. US Treasury Secretary Scott Bessent said the deal is “very substantial” and will help avoid new trade conflicts.
The agreement was made during the ASEAN summit in Kuala Lumpur, where China’s Vice Premier He Lifeng met with US officials. Under this deal, China will delay its plan to tighten export rules on rare earth minerals for about a year. In return, the US will not move ahead with the 100% tariffs it had planned on Chinese goods.
China also agreed to buy more US farm products like soybeans. Both countries will work together to control chemicals used in making fentanyl, showing efforts to improve cooperation in other areas too.
This deal is being seen as a positive move for both economies. It could help reduce trade stress and bring stability to industries that depend on rare earth minerals — important for electronics, electric cars, and defense products.
Impact:
This agreement might calm global markets and improve trade relations between the US and China. However, the final outcome will depend on how both sides implement the deal.
