China will pause new rare earth export controls for one year and begin easing an export ban on automotive computer chips as part of a US-China trade package announced, while President Donald Trump said the most advanced Nvidia Blackwell AI chips will be reserved for US companies.
The White House said China will effectively suspend implementation of additional export curbs on rare earth metals and will terminate investigations targeting US semiconductor supply chain firms, framing the steps as de-escalatory measures tied to talks following a meeting between President Xi Jinping and Trump in South Korea.
Beijing is also set to allow the resumption of trade in critical legacy automotive chips from Nexperia’s facilities in China, addressing shortages that had threatened European car production.
The European Automobile Manufacturers’ Association said the move is positive for supply but the scope and conditions remain unclear.
“The Chinese authorities have said they would start exporting eligible chips again, that they’re investigating and making lists of companies… but the scope and the conditions are as yet unclear,” said Director General Sigrid De Vries.
On agricultural trade, China committed to buy 12 million tonnes of US soybeans during November and December 2025 and 25 million metric tonnes in each of the next three years, which the White House described as a return to previous volumes. That purchase schedule marks a material reopening of the market after China halted US soybean buying earlier this year.
On fentanyl-related flows, the White House said it would lower tariffs previously imposed to curb imports of fentanyl into the US while China agreed to take “significant measures” to address the chemicals used to produce the drug.
Beijing’s embassy in Washington called the agreements mutually beneficial and echoed Xi’s view that business ties should serve as an anchor for the relationship rather than a point of friction.
Treasury Secretary Scott Bessent said the goal is not to decouple from China but warned that “they’ve shown themselves to be an unreliable partner.”
For industrial inputs, the rare earth reprieve reduces near-term risk across sectors that depend on permanent magnets, avionics and defense components. The pause does not eliminate licensing requirements already in force, and the White House characterization referenced additional controls rather than existing ones.
Nvdia Blackwell
At the same time, the administration drew a firm line on cutting-edge AI hardware. Trump told CBS that “the most advanced” Nvidia Blackwell chips would be kept for US customers only.
He said the US would not give the top Blackwell chips to “other people,” reiterating a tighter stance on the world’s most sophisticated accelerators. He left open that less capable versions might be available to foreign buyers, saying the US would let others deal with Nvidia “but not in terms of the most advanced.”
Nvidia last week said it would supply more than 260,000 Blackwell chips to South Korea and major firms there, including Samsung Electronics.
For autos, resuming legacy chip exports from Nexperia’s China facilities would relieve pressure flagged by manufacturers. Volvo Cars, Volkswagen and Jaguar Land Rover had warned that shortages could force temporary plant shutdowns.
The fact sheet states China will take “appropriate measures” to ensure trade resumes from those plants, though European automakers said they are waiting for operational details.
Information for this briefing was found via BBC, Reuters, and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
