The US has told China it must fully and immediately implement the trade truce agreed in Busan, citing frustration over rare earth exports. The warning arrives two weeks before Donald Trump and Xi Jinping are expected to meet in Shenzhen. The truce is set to expire on January 10.
US Treasury secretary Scott Bessent and US trade representative Jamieson Greer pressed Chinese vice-premier He Lifeng on Friday to deliver on the commitments Trump and Xi made in Busan last year. Washington says Beijing is not living up to its pledges on exports of rare earths and other products.
Treasury demands concrete results
In a readout obtained by the Financial Times, the Treasury said Bessent stressed the importance of China fully and immediately implementing its commitments and raised concerns about recent Chinese actions. The readout added that continued progress depends on concrete results and that the US will closely assess China's implementation.
One US official said Bessent and Greer made clear that Trump viewed the situation as a priority. In a post on X, Greer said he "underscored the critical importance of China taking concrete actions to fully implement its past commitments", particularly on agricultural purchases, rare earths and other critical minerals.
Rare earths and agriculture remain sticking points
However, Beijing disputes the US account. China has rejected US claims that it is not fulfilling its rare earths commitment. In September, US officials told the FT that China was only fulfilling two-thirds of its Busan pledge on rare earths.
The US has concluded that China is upholding pledges on soyabean purchases but has not lived up to its promises for other agricultural produce. Washington is also concerned about Chinese restrictions on yttrium exports to Japan, and Japanese companies have warned their government that stockpiles are running dangerously low.
Truce deadline and upcoming meetings
The Busan ceasefire, agreed in October 2025, expires on January 10. When Xi visited Washington in September, the two sides extended the original deadline by two months until January 2027 after negotiators failed to resolve differences.
Trump and Xi are expected to meet in Shenzhen, where China is hosting the Asia-Pacific Economic Cooperation summit. The trade issue is not expected to be a large part of that meeting, but will almost certainly be discussed in more detail when the two presidents meet at the G20 in Miami in December.
The Chinese embassy in Washington said Beijing would release a statement on the call in due course.
Source: Financial Times
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