What's behind Trump's generous approaches towards China?
In the ongoing trade standoff between the US and China, as of August 2025, publicly available information reveals a concentration on tariffs and trade enforcement actions, rather than specific negotiations centered around technology, energy, and rare earth minerals.
The US and China have implemented and threatened a range of tariffs on each other's goods, with increased duties on Chinese-origin goods and potential Section 232 investigations into commercial aircraft and related parts. However, no explicit mention of bilateral negotiations specifically targeting these sectors was found.
Despite this, recent US-China trade engagements typically focus on areas such as technology transfer restrictions, energy cooperation and competition, and the strategic importance of rare earth minerals. Discussions often revolve around controlling sensitive tech exports to China, China's role as a purchaser of US energy exports, and the US's aim to diversify sourcing and develop domestic capacity for rare earth minerals.
The lack of current negotiation details or agreements on these sectors in the public record suggests either ongoing confidential talks or a lack of recent publicly disclosed efforts explicitly targeting these themes.
In a recent development, China is seeking a lasting rollback in US tariffs, particularly in the technology and manufacturing sectors. Trump has extended the tariff truce with China until early November, and is negotiating a broader trade deal that could potentially include technology, energy, and rare earth minerals. This partial trade thaw could potentially disadvantage the European Union, South Korea, and Japan.
Negotiators are focusing on avoiding a return to triple-digit tariffs on Chinese goods and US exports. China wants safeguards for Chinese firms from US sanctions and assurances over access to cutting-edge US chips. Trump is urging China to quadruple its purchases of US soybeans.
The US has imposed a sweeping 40% transshipment tariff on all nations suspected of facilitating Chinese rerouting of goods. China controls about 60% of global rare earth production and nearly 90% of refining, making it a decisive factor in the trade standoff. China's tariff rate is currently capped at 30%, while countries like India and Brazil face up to 50% tariffs.
Movement on export controls on high-end chips from the US side and rare-earth from Beijing is expected. Washington is pushing for tighter restrictions on China's access to advanced artificial intelligence (AI) chips. India now faces a punishing tariff of up to 50% on general goods and an additional 25% on Russian oil purchases, effective from August 27.
China may see a slightly lower tariff rate, while US companies may gain better access to the Chinese market. The Chinese government is discouraging the use of Nvidia's H20 processor, a move seen as a public show that the country is becoming less reliant on the US for high-end technology. China imposed export controls on seven rare earth elements and permanent magnets after Trump announced sky-high tariffs in April.
The US-China negotiations are expected to continue until the deadline, potentially leading to a partial trade thaw. The Chinese government's actions, such as the discouragement of Nvidia's H20 processor, suggest a strategic approach to the negotiations, aimed at maintaining China's technological independence.
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