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The U.S. and China Sign a New Trade and Economic Agreement
The White House has officially announced the conclusion of an agreement with China aimed at stabilizing trade relations and reducing tensions between the world’s two largest economies. The document outlines mutual steps to ease tariff and non-tariff barriers, as well as measures in the areas of security and counter-narcotics cooperation.
Under the agreement, China will suspend the introduction of new export restrictions on rare earth metals and resume issuing export licenses. In addition, Beijing has pledged to take “substantial measures” to curb the supply of fentanyl and its precursors to the United States. Starting March 4, China will lift all retaliatory tariff and non-tariff measures imposed on U.S. goods and has agreed to purchase at least 12 million tons of American soybeans.
The United States, in turn, will reduce existing tariffs on Chinese goods from 20% to 10% and extend the Section 301 tariff exemptions until November 2026. The administration confirmed that these measures are intended to restore balance in trade and reduce inflationary pressures in the domestic market.
An important part of the agreement is the decision to establish new military communication channels between the Pentagon and China’s People’s Liberation Army. According to White House adviser Hegseth, this step is designed to reduce the risk of conflicts in the Asia-Pacific region and ensure direct communication to prevent incidents at sea and in the air.
Analysts note that the agreement could become a key turning point in U.S.–China relations, although differences remain over technology, Taiwan, and industrial subsidies. Both sides agreed to continue talks in an expanded format in 2026 to assess progress and adjust the terms of the deal.
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