The White House says China will ease its chip export ban in a new trade deal
The White House said China will begin easing an export ban on automotive computer chips vital to car production around the world as part of a trade deal reached between the United States and China.
The White House confirmed details of the deal in a new fact sheet after Xi Jinping and Donald Trump met in South Korea this week.
The countries also reached agreements on U.S. soybean exports, the supply of rare earth minerals, and materials used in the production of the drug fentanyl.
The agreement calms the trade war between the world’s two largest economies after Trump imposed tariffs on China after taking office this year, leading to rounds of retaliatory tariffs and uncertainty in global business.
A spokesman for the Chinese embassy in Washington told the BBC that details of the agreements reached had been shared by “relevant authorities”.
He added, “Economic and trade relations between China and the United States are mutually beneficial in nature.”
“As President Xi Jinping has pointed out, trade relations must continue to serve as an anchor and driving force for China-US relations, rather than a stumbling block or point of friction.”
Speaking on Sunday after details of the deal were published, Treasury Secretary Scott Besent told CNN: “We don’t want to break away from China… (but) they have shown that they are an unreliable partner.”
Much of what was in the fact sheet was announced Saturday by Trump and other officials after the meeting Between the two leaders.
Trump described the talks held in South Korea as “amazing,” while Beijing said it had reached a consensus to resolve “major trade issues.”
One of the issues addressed in the deal was the export of automotive computer chips. There have been concerns that a shortage of chips from Nexperia, which has production facilities in China, could create problems in the global supply chain.
Nexperia is a Chinese-owned company, but based in the Netherlands. About 70% of Nexperia’s chips made in Europe are sent to China for completion and re-export to other countries.
The fact sheet states that China “will take appropriate measures to ensure the resumption of trade from Nexperia’s facilities in China, allowing important legacy chip production to flow to the rest of the world.”
This comes after Beijing said on Saturday that it was considering an exemption Some companies are banned.
Last month, companies such as Volvo Cars and Volkswagen warned that a chip shortage could lead to temporary closures at their factories, and Jaguar Land Rover said the chip shortage poses a threat to its business.
On other key issues, Beijing will now suspend export controls it imposed last month on rare earth metals – vital in the production of cars, aircraft and weapons – for a year.
The White House also said it would reduce tariffs that were imposed to limit fentanyl imports into the United States, with China agreeing to take “significant measures” to deal with the issue.
Fentanyl is a synthetic drug made from a mixture of chemicals, and while it was approved for medical use in the United States, the powerful, highly addictive substance has since become the leading drug responsible for opioid overdose deaths in the United States.
The chemicals used in its manufacture, some of which have legitimate uses, Most of it is sourced from China.
Regarding soybeans, China has committed to purchasing 12 million metric tons of U.S. soybeans in the last two months of 2025, and 25 million metric tons in each of the next three years — roughly the level it was previously at.
China’s decision to stop buying soybeans from the United States earlier this year deprived American farmers of access to their largest export market.
Trump responded Reviving the rescue plan for farmers Which existed during his first term.