New China Trade ‘Deal’ Takes U.S. Back to Where It Started

Author: Ana Swanson
\ Published on: 11/06/2025 | 00:00:00

AI Summary:
\ Officials from the two countries reached a handshake agreement in the early hours of Wednesday in London to remove some of the harmful measures they had used to target each other’s economies. It remains unclear whether the truce will hold — or crumble like one struck in May did. Even if the agreement does prove durable, its big accomplishment appears to be merely returning the countries to a status quo from several months ago. The United States will relax new limits on its own exports of technology and products, as well as walk back threats to cancel visas for Chinese students in the United States. The countries did not announce progress on other trade issues. That matters would be left for future discussions, American officials said. Trump proclaimed on social media that “our deal with China is done” and that “relationship is excellent,” though he acknowledged that the agreement was still subject to final approval by himself and his counterpart, Xi Jinping. “Full magnets, and any necessary rare earths, will be supplied, up front, by China,” he wrote, in all capital letters. Philip Luck, a director in the economics program at the Center for Strategic and International Studies, wrote in a recent analysis that U.S. Restrictions on ethane exports destined for China had particularly backfired. They forced, for example, major American energy companies to halt billions of dollars in planned exports. With a cut off, Chinese plants could simply burn other fuels they can obtain elsewhere — which would prevent any interruptions. China has shown its ability to use export controls to inflict pain on the United States. "Trump should understand that pressure and threats are definitely not the right way to deal with China," he wrote. Some analysts have also questioned the precedent that the Trump administration set by putting in play U.S. Export controls. U.S. Businessman Sentenced to five years in prison in China. Chinese and Hong Kong officials targeted over transnational repression. China has released five employees of an American corporate investigations firm.

Original: 1597 words
\ Summary: 336 words
\ Percent reduction: 78.96%

I'm a bot and I'm open source