Trade de-escalation between the US and China: Beijing’s temporary concessions allow Xi Jinping to consolidate power and adapt to the consequences of the Middle East conflict

On June 26, 2025, Donald Trump announced the signing of a trade agreement with China, marking the beginning of a new phase in implementing agreements reached in Geneva in May 2025 and refined in London in early June 2025.

Under the terms of the agreement, the United States will lift several restrictive measures against China, in exchange for Beijing accelerating the supply of rare earth elements to the United States.

The conclusion of additional agreements to implement the Geneva accord was confirmed by U.S. officials Howard Lutnick and Scott Bessent, as well as China’s Ministry of Commerce, which confirmed Beijing’s further approval of export applications for controlled goods.