After the agreement of the two sides, the Chinese and US leaders will meet tomorrow, which is October 30 in Busan, South Korea, as a preparation before the meeting, the two countries each sent a meeting present for each other, what is this meeting present?

01 Chinese and American leaders will meet on October 30

In recent years, the two sides have been very unpleasant because of shipping charges, Russian oil, U.S. soybeans, rare earth and other issues, Trump even vowed to impose a 100% tariff on China, but even so Trump stressed that he did not cancel the plan to meet with Chinese leaders, which means that Trump does not want to make the negotiations between the Sino-U.S. and the US-Russian negotiations on Ukraine as unpleasant, nor does he want to let the imminent expiration of the temporary tariff period trigger a new round of tariff war between the two countries.

After constructive discussions between the economic and trade teams of the two sides in Kuala Lumpur, Malaysia, the two sides reached a basic consensus and agreed to further determine the specific details.

On October 29, the Chinese Foreign Ministry said that the US leader will meet in Busan on October 30 to exchange views on issues of common concern.

In other words, this time Chinese and US leaders will hold detailed discussions on a series of issues such as tariffs. After the discussions, an agreement will be reached, bringing Sino-US relations to a new stage.

02 China and the United States send each other a gift

During the talks between the Sino-US economic and trade teams in Kuala Lumpur, Trump said that he believed that a satisfactory agreement could be reached when the leaders of China and the United States met. Now it seems that in order to make this agreement satisfy him, Trump has made a big concession. In an interview, Besent said that "the United States will abandon its threat to impose a 100% tariff on China."

That is, at least on the tariff issue, China and the United States will at least be able to maintain the status quo, stay above the quota of a benchmark tariff, rather than the high tariff above 100% in April, which also means that the trade between the two sides will not fall into a state of interruption after the expiration of the tariff suspension in November, and the two sides can still maintain trade.

Previously, Trump imposed high tariffs on Chinese goods for various reasons such as fentanyl, which triggered China's counter-measures, and also imposed high tariffs on American goods. During this period, the control of rare earths was further strengthened.

Now that Besent has lifted the 100% tariff threat, it means that the United States wants to return the status quo between China and the United States to before April.

In return, Besent also said that China's rare earth export restrictions are expected to be delayed by one year, claiming that this is "President Trump's use of tariffs as a strong bargaining chip to enable both sides to finally reach a temporary easing on the issue of rare earth exports."

Due to its absolute leadership in rare earth processing technology, China has formed a global monopoly in the field of rare earths. In particular, a number of military enterprises in the United States cannot leave China's rare earth supply when producing weapons. Under the circumstances of China's rare earth control, the military production capacity of the United States has dropped a lot visibly to the naked eye, forcing Trump to look for alternative rare earth suppliers all over the world, but no country can replace China's role in a short time.

Therefore, Trump has repeatedly asked China to release rare earth exports during this time, but under various U.S. sanctions, China has never been able to let go, and now the delay in the implementation of rare earth export restriction measures is to slow the United States a little.

But it is worth noting that this delay in the implementation of rare-earth export restrictions only gives a one-year suspension period, and after the expiration of a year, China can still impose rare-earth export restrictions, or if the United States re-imposes sanctions during this period, immediately implement.

From the point of view of Bessent, Trump is eager to show his "tactical victory" in the meeting, only to give up the 100% tariff threat to China, thereby making a win-win pattern for his own mid-term elections, and China has long understood the nature of Trump, only to delay the implementation of a year of rare-earth export restrictions, can change at any time.

It can be predicted that the agreement reached by the meeting of the Sino-U.S. leaders is not the end of the Sino-U.S. trade war, but the beginning of a new round of game, and the Sino-U.S. relationship in the future is still full of uncertainty.

U.S. Treasury Secretary Bessent said China had not actually implemented measures to control rare earth exports, and hinted that U.S. threats to impose 100% tariffs on China played a role in trade consultations, the Foreign Ministry responded.

Has China's rare-earth export control measures come into effect?