As part of a newly forged trade agreement between the United States and China, Beijing will begin easing export restrictions on automotive computer chips, a critical component in global car manufacturing, according to the White House.
The White House released details of the agreement in a fact sheet following a meeting this week in South Korea between President Xi Jinping and former President Donald Trump.
The two nations also reached accords regarding the export of U.S. soybeans, the supply of rare earth minerals, and materials utilized in the production of fentanyl.
This agreement marks a de-escalation in the trade tensions between the world’s two largest economies, which intensified after Trump imposed tariffs on Chinese goods upon entering office, leading to retaliatory measures and global economic uncertainty.
Chinese Embassy in Washington spokesperson Liu Pengyu conveyed to the BBC that details of the agreements were shared by relevant Chinese authorities.
“China-US economic and trade relations are mutually beneficial in nature,” he stated.
“As President Xi Jinping noted, the business relationship should continue to serve as the anchor and driving force for China-US relations, not a stumbling block or a point of friction.”
In a statement on Sunday following the release of the agreement details, Treasury Secretary Scott Bessent told CNN, “We don’t want to decouple from China… (But) they’ve shown themselves to be an unreliable partner.”
The recent fact sheet largely reiterates information previously announced by Trump and other officials following the meeting between the two leaders.
Trump characterized the talks held in South Korea as “amazing,” while Beijing indicated that they had reached a consensus to address “major trade issues.”
One key aspect of the agreement addresses the export of automotive computer chips. Concerns had arisen that a shortage of chips from Nexperia, a company with production facilities in China, could disrupt global supply chains.
Nexperia, though Chinese-owned, is headquartered in the Netherlands. Approximately 70% of Nexperia chips manufactured in Europe are sent to China for final processing and subsequent re-export to other nations.
The fact sheet specifies that China will “take appropriate measures to ensure the resumption of trade from Nexperia’s facilities in China, allowing production of critical legacy chips to flow to the rest of the world.”
This follows Beijing’s announcement on Saturday that it was considering exempting certain firms from the ban.
Last month, major automotive manufacturers such as Volvo Cars and Volkswagen cautioned that a chip shortage could lead to temporary plant shutdowns, while Jaguar Land Rover cited the chip shortage as a potential threat to their operations.
Regarding other key issues, Beijing will temporarily suspend export controls implemented last month on rare earth minerals—essential components in the production of vehicles, aircraft, and weaponry—for a period of one year.
The White House also stated that it would reduce tariffs imposed to limit the import of fentanyl into the U.S., with China agreeing to take “significant measures” to address the issue.
Fentanyl, a synthetic drug produced from a combination of chemicals, is approved for medical use in the U.S. However, its potent and highly addictive nature has made it the primary substance responsible for opioid overdose deaths in the country.
The chemicals used in its manufacturing, some of which have legitimate uses, are predominantly sourced from China.
Concerning soybeans, China has committed to purchasing 12 million tonnes of U.S. soybeans in the final two months of 2025, and 25 million metric tonnes in each of the subsequent three years—roughly equivalent to previous levels.
China’s earlier decision to cease soybean purchases from the U.S. deprived American farmers of their largest export market.
In response, Trump reinstated a bailout program for farmers, which had been in effect during his initial term.
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