Trump, Xi agree on ceasefire in trade war: China eases curbs on rare earth exports, Pg1.

Key Highlights:

• US President Donald Trump and Chinese President Xi Jinping agreed to a ceasefire in the trade war during a meeting in South Korea.
• The US will reduce tariffs on Chinese goods from 57% to 47%.
• China will resume purchases of US soybeans, agreeing to buy 25 million tons annually for the next three years.
• China agreed to pause export controls on rare earths for a year.
• The US will suspend new Entity List restrictions for one year, which target Chinese firms' access to US technology.

Detailed Insights:

• The agreement between the US and China will be up for renegotiations each year, differing from standard WTO-compliant trade deals.
• China will work to stop the flow of fentanyl, a synthetic opioid, to the US.
• The deal includes a US pledge to delay a measure barring Chinese firms from receiving US technology if they are part-owned by a sanctioned company.
• China has approved an agreement to bring short video app TikTok under US-controlled ownership and agreed to purchase oil and gas from the US.
• The US will suspend measures targeting China’s maritime logistics for one year.

Key Concepts Involved:

• Tariffs: Taxes imposed on imported goods or services.
• Rare Earths: A set of seventeen metallic elements that are vital in various technologies.
• Entity List: A trade blacklist maintained by the US government restricting exports to listed entities.