China to Ease Chip Export Ban as Part of New Trade Deal with US, Says White House

China has agreed to ease its export ban on automotive computer chips as part of a new trade deal reached with the United States, signaling a major step toward de-escalating the ongoing trade tensions between the two economic giants.

In a landmark move to stabilize global trade relations, China will begin lifting its export ban on automotive computer chips — a crucial component for car production worldwide — according to a statement released by the White House. The decision follows a high-level meeting between Chinese President Xi Jinping and US President Donald Trump held in South Korea earlier this week.

The agreement also covers several key sectors, including US soybean exports, rare earth minerals, and materials linked to the production of the drug fentanyl. The White House described the deal as a significant step toward easing the trade war that has strained economic relations since Trump imposed tariffs on China earlier this year, triggering a cycle of retaliatory measures.

A spokesperson for the Chinese Embassy in Washington told the BBC that official details of the agreements had been communicated through “competent authorities,” adding that China-US trade ties remain “mutually beneficial.” President Xi emphasized that economic relations should act as a stabilizing force rather than a source of conflict.

US Treasury Secretary Scott Bessent said the deal reflects the US’s intent to maintain engagement with China despite concerns over reliability. “We don’t want to decouple from China… but they’ve shown themselves to be an unreliable partner,” he stated during an interview with CNN.

One of the most anticipated outcomes of the agreement involves the easing of restrictions on Nexperia, a Chinese-owned semiconductor firm based in the Netherlands. The White House fact sheet confirmed that China will “ensure the resumption of trade from Nexperia’s facilities in China, allowing production of critical legacy chips to flow to the rest of the world.”

This decision comes as global automakers like Volvo, Volkswagen, and Jaguar Land Rover have warned of potential production halts due to chip shortages. Sigrid De Vries, Director General of the European Automobile Manufacturers’ Association, said that while the move is positive, uncertainty remains about the full scope and conditions of the policy change.

Additionally, Beijing announced a one-year suspension of export controls on rare earth minerals, which are vital for the production of vehicles, aircraft, and defense systems. On the US side, Washington has agreed to ease tariffs related to fentanyl imports, while China has pledged to intensify measures to curb the flow of precursor chemicals used to manufacture the synthetic opioid.

In another major development, China has committed to purchasing 12 million tonnes of US soybeans in the final two months of 2025 and 25 million tonnes annually for the next three years — restoring trade volumes to pre-trade-war levels. Earlier restrictions on soybean imports from the US had severely impacted American farmers, prompting the Trump administration to revive financial aid programs.

The deal marks a cautious yet promising step toward rebuilding trust between the world’s two largest economies, with both sides signaling a willingness to cooperate on critical global supply chain issues.