US and China Extend Trade Truce as Rare Earth Export Controls Remain on Hold

The US and China are implementing an agreement to extend their trade truce by two months. China’s Ministry of Commerce announced that export controls on rare earths and related equipment will remain on hold until mid-January 2027. The Office of the United States Trade Representative also extended exemptions from additional tariffs under Section 301 for 178 Chinese products and published a draft notice proposing to continue the suspension of port fees on Chinese vessels until the same time. The fees stem from a US Section 301 investigation into China’s shipbuilding industry.

A cargo port in Tianjin, China.（VietVance）

The US and Chinese leaders agreed in September 2026 to extend the trade truce. US Treasury Secretary Scott Bessent said that month that the truce would remain in effect until January 10, 2027.

The two sides still disagree over how to fulfill their commitments. Inside Trade reported that a Chinese Ministry of Commerce official said China would fulfill its commitment to purchase US agricultural products only if each side reduced tariffs on $30 billion worth of goods. The Office of the United States Trade Representative said the bilateral Trade Council framework only identifies goods that could be excluded from future tariff measures; any tariff reductions remain subject to review. A US Section 301 investigation into industrial overcapacity in several economies, including China, could also lead to new tariffs.

The Office of the United States Trade Representative said US Trade Representative Jamieson Greer held a video meeting with Chinese Vice Premier He Lifeng on November 7 and urged China to take concrete steps to fulfill its commitments on agricultural purchases, rare earths and other critical minerals. The office’s statement did not mention the trade truce or its extension.

Source: VietVance