Xi Outmaneuvers Trump in High-Stakes Trade Truce

China’s Strategic Leverage
What Was Gained—and Given?
Rare Earths and Soybeans: The Real Currency
Geopolitical Implications
Sources

Xi Outmaneuvers Trump in High-Stakes Trade Truce

In a dramatic turn of geopolitical chess, Chinese President Xi Jinping has emerged from recent trade negotiations with former U.S. President Donald Trump not just unscathed—but visibly strengthened. By strategically withholding key exports like soybeans and rare earth minerals, Beijing secured significant concessions without major policy reversals.

What Was Gained—and Given?

The October 2025 agreement, finalized during the leaders’ meeting in Busan, saw the U.S. agree to reduce tariffs on Chinese goods from 57% to 47%—a substantial 10-percentage-point cut . In exchange, China committed to increased agricultural purchases, including soybeans and sorghum, and pledged cooperation on fentanyl precursor controls .

Critically, however, Washington also suspended planned export controls on advanced semiconductor technologies and rolled back certain port fees targeting Chinese shipping—a quiet but pivotal win for Beijing .

Rare Earths and Soybeans: The Real Currency

China’s leverage stemmed from its near-monopoly on rare earth elements—vital for everything from smartphones to fighter jets. Though Trump later claimed concerns over rare earths were “settled,” analysts note that no formal export restrictions were ever imposed; instead, the mere threat forced U.S. concessions .

Similarly, China’s delayed soybean purchases—historically a lifeline for American farmers—created economic pressure in key swing states. The eventual promise to buy 25 million metric tons of U.S. farm products served more as a face-saving measure than a true concession .

Geopolitical Implications

This outcome underscores a shift in trade diplomacy: where once the U.S. dictated terms, China now wields asymmetrical economic tools with precision. By avoiding direct confrontation while exploiting supply chain dependencies, Xi reinforced China’s position as a strategic counterweight without escalating tensions.

For Trump, the deal offers a narrative of “bringing China to the table.” But the substance favors Beijing—securing tariff relief and delaying tech curbs that could cripple its semiconductor ambitions.