World

Trump’s Tech Export U-Turn: How a China Summit Paused New Restrictions and Sparked a Trade Truce

US suspends tech restrictions on China for a year. China delays rare earth export rules. A trade truce emerges.

October 30, 2025, 4:21 PM

U.S. Treasury Secretary Scott Bessent looks up as he speaks, with a green background

U.S. Treasury Secretary Scott Bessent speaks to reporters after an interview at the White House. By DT phots1 / Shutterstock.com.

Executive Summary

The U.S. has suspended for one year a new measure, the “affiliates rule,” that expanded restrictions on Chinese firms’ access to U.S. technology.

This decision followed a summit between President Donald Trump and Chinese leader Xi Jinping.

In exchange, China committed to a one-year delay in its rare earth mineral export restrictions.

The Story So Far

The recent agreement to suspend U.S. technology restrictions and delay Chinese rare earth export limits stems from ongoing trade tensions between the two nations. The Trump administration had previously implemented a new “affiliates rule” to prevent Chinese firms from circumventing U.S. export controls on technology, which Beijing strongly opposed. This temporary, reciprocal concession aims to de-escalate these economic pressures, with China’s critical role in rare earth minerals providing significant leverage.

Why This Matters

The U.S. decision to suspend the “affiliates rule” temporarily eases restrictions on an estimated 20,000 Chinese firms’ access to U.S. technology, preventing an immediate escalation of trade tensions. In return, China’s delay in rare earth export restrictions ensures continued access to these critical minerals for U.S. industries, averting potential supply chain disruptions. This reciprocal agreement signals a temporary de-escalation in economic relations between the two powers, offering a brief reprieve from ongoing trade disputes.

Who Thinks What?

The U.S. government, through Treasury Secretary Scott Bessent, views the one-year suspension of the “affiliates rule” as a reciprocal agreement and a result of productive discussions with China, leading to a temporary de-escalation of trade tensions.

The Chinese government, which had strongly opposed the “affiliates rule,” agreed to delay its rare earth licensing regime for one year in exchange for the U.S. suspension, indicating a concession to alleviate pressure from U.S. technology restrictions.

The United States has agreed to suspend for one year a new measure that significantly expanded restrictions on Chinese firms’ access to U.S. technology. This decision, announced by U.S. Treasury Secretary Scott Bessent on Thursday, followed a summit between President Donald Trump and Chinese leader Xi Jinping in South Korea, where China committed to a one-year delay in its rare earth mineral export restrictions.

Details of the U.S. Suspension

The suspended measure, known as the “affiliates rule,” was introduced by the Trump administration on September 29. It prohibited Chinese firms with at least 50% ownership by previously sanctioned entities from receiving U.S. technology exports.

The rule was designed to prevent Chinese companies from circumventing restrictions by using subsidiaries. According to a report from WireScreen, this measure would have subjected an additional 20,000 Chinese firms to U.S. export controls. Beijing had expressed strong opposition to the rule.

China’s Concession

In exchange for the U.S. suspension, China agreed to delay its rare earth licensing regime for one year. Rare earth minerals are crucial components for advanced technology and are predominantly supplied by China.

Treasury Secretary Bessent indicated that the agreement emerged from a productive meeting between President Trump and President Xi earlier in the day. He noted that the leaders engaged in discussions on “big picture issues with great respect.”

Outlook on Trade Relations

This temporary moratorium reflects a reciprocal agreement aimed at de-escalating trade tensions between the two economic powers. Both nations have made concessions in areas critical to their respective technological and industrial sectors, signaling a potential, albeit temporary, thaw in their ongoing economic relations.