On October 25-26 local time, the fifth round of China-U.S. economic and trade negotiations took place in Kuala Lumpur, Malaysia, lasting five and a half hours, finally ended, from the statement of both sides, the Chinese side was relatively smooth, and the Chinese side Li Zhengzhou went to the meeting place, was photographed with confidence and full of a smile to interview.
But the other side is different, this time the U.S. side is still led by the U.S. finance minister Bessent, he not only closes his eyebrows and is serious. after the negotiations, the U.S. finance minister said that the negotiations both have made concessions, and also said that the basis for the next South Korean meeting was laid, in the wording only three words "not easy", indeed, what Trump wanted, the Chinese side gave, the U.S. finance minister can finally cross Trump.
Focus on rare earths and soybeans
The fifth round of China-US negotiations, much smoother than imagined, this is probably the most crucial reason the United States can not delay, the United States is currently facing two major problems, the first is soybeans, no way to sell, all stacked in warehouses.
The absence of Chinese soybean orders is the most distressing problem for the United States. The main soybean producing areas in the United States are concentrated in agricultural states such as Iowa and Illinois. These states have always been "swing states" in presidential elections, and their vote direction directly affects the election results. Trump demanded that the soybean export problem be solved as soon as possible. The Trump administration knows very well that if it can't win substantial benefits for soybean farmers in the negotiations, it will face the risk of losing key votes in the election.
Ridiculously, the United States had tried to relieve pressure by finding alternative markets and promote soybean exports to Brazil, India and other countries, but with little effect. As the world's largest soybean importer, China has irreplaceable market size.
The second is rare earth, which is known as "industrial vitamins", although the use in the product is small, but in the cutting-edge technology field is indispensable, such as F-35 fighter engine, precision guided missile guidance system, high-end chip manufacturing process, are inseparable from China's control of heavy rare earth processing capacity.The United States is deeply disturbed by the fact that China recently announced rare earth export controls, China controls 70% of the world's rare earth production capacity, while the US supply of more than 90% of rare earth depends on Chinese imports.
China's "giving" has always been closely bound to the "taking" of the United States. Bescent's "both sides have made concessions" is by no means a polite remark, but a real exchange of interests.
From the content of the notification, both China and the United States have given positive feedback on this assessment, and the Chinese side said that "a basic consensus has been reached", Bessent said in an interview after returning home, further emphasizing, China will purchase massive amounts of soybeans and delay comprehensive controls on rare earth.
In this way, China does make concessions, which is also the inevitable result of mutually beneficial cooperation.So what concessions did the US make?
100% tax hike plan completely suspended
The most direct outcome of the negotiations was that the U.S. clearly abandoned the previously threatened 100% tariff plan against China.Besent said in a press conference that "no longer consider" the option, which is symbolic for easing China-U.S. trade tensions.It should be known that the U.S. has repeatedly taken tariffs as a negotiation code, claiming to impose high tariffs on hundreds of billions of dollars worth of Chinese imports to the U.S. goods, a threat that brings continued uncertainty to the global market.
For the US, giving up the tariff threat is also a helpless move. Statistics from the American Chamber of Commerce show that the tariff policy implemented in 2025 has cost the U.S. economy more than $80 billion, and the unemployment rate has risen to 4.5%. Consumers and businesses are the biggest victims ".
In addition, in the maritime field, the U.S. agreed to delay the implementation of some high port charges for Chinese ships. Previously, the U.S. imposed additional charges on Chinese companies such as long-haul shipping on the basis of "contra-subsidies", resulting in these companies spending more than $1.5 billion a year. In exchange, China promised to give a fee reduction to ships purchased or repaired by the U.S. to China, this "cross concession" became a typical feature of the negotiations.
The US Treasury Secretary didn't expect three
This five-and-a-half-hour consultation caused the U.S. Treasury Secretary to encounter three "unexpected" events in succession. First, he didn't expect that "Wolf Warriors" Li Chenggang was still the leader of the negotiation.
On a public occasion a week ago, Bessent also placed the label of "war wolf" in front of the media, the words are full of blasphemy and accusations, and the words reveal the rejection of this negotiating opponent.
At that time, many Western media analyzed that China might consider replacing negotiators with a more moderate style in order to avoid intensifying conflicts and promote the progress of negotiations. After all, the United States had repeatedly used public opinion pressure to express its dissatisfaction with the style of its negotiating opponents. But the facts severely slapped these speculations in the face. Not only did China insist on Li Chenggang leading the team to attend the Kuala Lumpur consultations, but the United States did not even raise any objections during the entire process. Instead, it took the initiative to seek docking with the Chinese team when the advancement of the issue was blocked.
Second, rare earth control is only "delayed" and not "cancelled", before the negotiations, one of the most urgent demands of the US is to completely lift China's rare earth export control, after all, military industrial giants such as Lockheed Martin have issued early warning, if China loses rare earth supply, the F-35 fighter production line will face the risk of stagnation.
According to Bescent, China put forward the plan of "delaying the comprehensive control of rare earths for one year". The difference between this word is a world of difference: Rare-earth controls are just “delayed for a year” rather than cancelled, indicating that China is still holding the card and can play it again at any time depending on the circumstances.
It is worth mentioning that on the 26th, when interviewed by the media, he announced the world that he still “The United States will not change its export controls against China.”In other words, the United States will continue to target our country on export control issues. It seems that I am still dissatisfied with China's concessions.
Bessent may have long expected the Chinese side to stick to its position, but he must not have expected that the Chinese side's "hard gas" has long been from the hard talk of negotiation, upgraded to the strategic confidence supported by real strength.
In the negotiations, in the face of the unreasonable requirements of the "50% penetration rule" thrown by the United States, the Chinese side did not give any concessions, but instead directly put out issues such as U.S. ship charges, chip control to counteract, clearly put forward the principle of "reciprocal openness, two-way control", forcing the U.S. side to re-examine the rationality of its own policy.
Two words of steel.
After the negotiations, two words, short of a few dozen words, summarized the essence of the consultation.
In the first sentence, "The US side is tough in expressing its position, and China is firm in safeguarding its interests". At the negotiating table, the United States continued its previous strong style, frequently threatening sanctions and restrictions, but this toughness stayed more at the posture level; China's firmness is reflected in its practical actions. Every step of counter-measures steps on the pain points of the US side, but it always remains within a reasonable and legal framework.
Compared to the slightly exaggerated expression of the "very substantive framework" by the US, China uses "formed a preliminary consensus" to define the negotiation results, and is more pragmatic and clear. No use of "major breakthrough", "historic progress" and other pronouns, both objectively reflect the progress achieved in the negotiations, but also suggests that consensus still needs to undergo multiple tests.
For the United States, the capriciousness of the Trump administration is the biggest variable. The history of Sino-US economic and trade frictions shows that the signing of the agreement is only the first step, and subsequent implementation is the key. Of course, this is only a phased achievement in the long-term game between China and the United States, not the end. China does not bother, nor is it afraid of things, nor is it afraid of such a "side talks" situation.