The United States has agreed to postpone a highly contentious technology restriction against Chinese firms as part of a new one-year deal. This agreement was reached after a meeting between President Trump and President Xi Jinping.
The measure, which China strongly opposed, would have prevented thousands of Chinese companies from accessing US technology if they were partly owned by a sanctioned entity. The US has now committed to delaying this rule for one year.
This concession was part of a broader agreement aimed at de-escalating the trade war. The US also agreed to slash some tariffs and export controls. In response, China agreed to buy US soybeans and pause fresh curbs on rare earth exports.
President Trump, who had previously threatened a 100% tax on rare earths, confirmed China would not tighten its restrictions. He called his meeting with Xi “amazing” and announced plans for a state visit to China in April.
Following the meeting, President Xi spoke at the APEC forum in Gyeongju, South Korea. He advocated for “genuine multilateralism” and protecting global supply chains, urging nations to “join hands rather than letting go.”