US urges China to meet Busan trade promises as rare earth exports disappoint

Washington has been pushing Beijing to deliver on the promises that Presidents Donald Trump and Xi Jinping struck in Busan, South Korea, back in October 2025. Treasury Secretary Scott Bessent noted that he and US Trade Representative Jamieson Greer brought up these issues with Chinese Vice Premier He Lifeng, underscoring that any forward momentum hinges on real outcomes.

Rare earths remain the central obstacle. According to US officials speaking to the Financial Times, China has delivered only roughly two-thirds of what it agreed to and has not boosted shipments as the US had anticipated. China contests this evaluation. A particular substance of concern is yttrium, which appears in jet engines and missiles. The FT indicated that China's export curbs are disrupting Japanese suppliers that in turn supply American manufacturers.

What commitments did the US and China make in Busan?

• Rare earths and critical minerals. China undertook to suspend the wider export restrictions it proclaimed in October 2025 and to grant general export licenses for rare earths, gallium, germanium, antimony and graphite for US end users and their suppliers around the globe.

• Agriculture. Beijing pledged to purchase at least 12 million metric tons of US soybeans in the last two months of 2025 and at least 25 million metric tons per year from 2026 to 2028. It further committed to restart buying US sorghum and lumber and to put on hold several retaliatory tariffs. The FT reported that US officials consider China on track with its soybean commitment but behind on other farm product purchases.

• Tariffs and other measures. As part of the initial agreement, the US consented to maintain the suspension of elevated reciprocal tariffs, reduce tariffs linked to fentanyl by 10 percentage points, and halt several export-control and shipping actions. China concurred to strengthen restrictions on chemicals involved in fentanyl production and to relax some steps that influence US chipmakers.

What should market participants keep an eye on now?

Per the FT, the truce has now been stretched until January 10, 2027. In the near term, the gauge will be whether approved exports result in more physical materials arriving at US factories and their supply chains. An uptick in deliveries would offer both Washington and Beijing tangible progress to reference when negotiations resume. Should supply remain constrained, rare earths may present a larger hurdle for a further extension as the January cut-off looms.