China agrees to trade concessions in landmark deal with U.S.

China has agreed to suspend additional export controls on rare earth metals and end investigations into U.S. chip companies, marking a significant step toward easing tensions in the ongoing trade conflict with the United States. The White House released a fact sheet late Saturday detailing the agreement reached last week between Chinese President Xi Jinping and U.S. President Donald Trump in South Korea.

As part of the deal, the United States will pause certain reciprocal tariffs on Chinese goods for another year and halt plans to impose a 100% tariff on Chinese exports that had been scheduled to take effect this month.

The agreement also includes reductions in tariffs on goods linked to fentanyl production, with China pledging to work to curb the flow of the drug. Overall, tariffs on Chinese goods will drop from 57% to 47%.

The trade truce comes after months of escalating tensions and uncertainty between the world’s two largest economies. Under the agreement, China will resume significant purchases of U.S. soybeans and increase its energy imports from the United States, with Trump hinting at a potential transaction involving Alaskan oil and gas. The U.S. will also mediate discussions between Beijing and Nvidia CEO Jensen Huang over China’s use of restricted semiconductor technology.

While questions remain about the long-term durability of the agreement, the deal represents a milestone in U.S.-China relations, which had been strained by aggressive trade measures early in Trump’s presidency. Markets had been rattled by threats of tariffs and retaliatory measures, making the truce a welcome development for investors and businesses alike.