China’s Ministry of Commerce has announced that it will remove export control measures against 15 U.S. entities and suspend similar restrictions on another 16 for one year, effective November 10.
The decision, which allows Chinese exporters to apply for licenses to sell dual-use items to the affected American companies, is a major easing of trade tensions between the world’s two largest economies. It also reverses measures China had imposed earlier this year when several U.S. firms were added to Beijing’s “unreliable entity list” amid tit-for-tat trade restrictions.
The move comes days after the meeting between U.S. President Donald Trump and Chinese President Xi Jinping in Busan, South Korea — the first direct encounter between the two leaders since 2019. During that meeting, the two sides agreed to lower trade barriers and suspend punitive measures that have weighed heavily on global markets.
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Among the outcomes was Washington’s decision to reduce certain tariffs on Chinese imports, including cutting the so-called “fentanyl” tariff from around 20 percent to 10 percent and reducing overall tariffs on Chinese goods from roughly 57 percent to 47 percent. Beijing, in turn, agreed to pause new export controls on rare earths and other strategic materials for one year, while resuming large-scale soybean purchases from the United States.
These developments mark a rare thaw in a trade relationship defined by years of confrontation. Since the onset of the U.S.–China trade war, both sides have resorted to sweeping tariffs, sanctions, and export bans, each claiming the other engaged in unfair practices or posed national security risks.
Washington’s moves to restrict technology transfers, particularly in semiconductors and AI components, were met with Beijing’s own export curbs targeting rare earth minerals — elements essential to producing smartphones, electric vehicles, and military hardware. The resulting standoff rattled global supply chains and deepened economic uncertainty.
China’s latest decision to lift and suspend its export control measures is widely interpreted as a signal of goodwill following the Busan summit. Under the revised policy, Chinese exporters can now apply for licenses to ship dual-use goods to the 15 U.S. entities that had been blocked. For the 16 companies whose restrictions are temporarily suspended, domestic Chinese firms will be able to apply to conduct transactions or resume trade under regulatory approval.
These adjustments effectively ease the trade constraints that had hampered U.S. companies in key sectors, allowing for renewed commercial activity and cooperation in areas that straddle civilian and defense applications.
The Ministry of Commerce said the decision would also extend to measures introduced in March and April, when several U.S. companies were blacklisted under the unreliable entity framework. The ministry emphasized that the suspension would last for one year, suggesting that Beijing is leaving the door open to reimposing restrictions if diplomatic progress stalls.
Analysts say both sides have strong incentives for de-escalation. The Trump administration has been seeking relief for American exporters and manufacturers that faced steep costs from retaliatory tariffs, while China has been under pressure to stabilize its slowing economy and reassure investors amid weak domestic demand. The one-year suspension offers breathing space for trade-dependent industries, though experts warn it represents a tactical pause rather than a permanent settlement of the deeper geopolitical rivalry.
The U.S.–China trade war has been one of the most consequential economic confrontations in modern history. It began under President Trump’s first term when the United States levied tariffs on hundreds of billions of dollars’ worth of Chinese goods, citing unfair trade practices and intellectual property theft. China responded with its own tariffs on American exports, particularly targeting agricultural products like soybeans, wheat, and cotton.
Over time, the dispute expanded beyond tariffs into broader strategic competition over technology dominance, industrial policy, and global influence. Beijing’s control over rare earth elements became a particularly potent tool, as the minerals are indispensable to industries ranging from consumer electronics to aerospace. When China hinted at restricting their exports, markets worldwide reacted sharply, fearing disruptions in critical manufacturing chains.
President Trump described the Busan agreement as “a step toward fairness and balance,” while Chinese state media framed it as “a pragmatic reset in U.S.–China economic dialogue.”