US President Donald Trump and China President Xi Jinping reached consensus on agricultural trade and supply chain priorities following a bilateral leaders' meeting in Beijing. According to a White House fact sheet, the two leaders agreed to establish the US-China Board of Trade and the US-China Board of Investment. The Board of Trade will enable both governments to manage bilateral trade across certain goods.
A spokesperson for China's Ministry of Commerce stated that the Trade Council will discuss tariff reductions on relevant products, with both sides agreeing "in principle" to reduce tariffs on certain goods. Both countries also aim to resolve non-tariff barriers and market access issues on agricultural products. The US committed to addressing China's concerns regarding dairy products, aquatic products, and media-grown bonsai exports.
The most significant element of the agreement is China's commitment to purchase at least $17 billion in US agricultural products throughout the remainder of 2026 and into 2027 and 2028. This is in addition to the soybean purchase commitments made in October 2025. China also renewed licenses for over 400 US beef facilities whose listings had expired, and added new facilities, thereby restoring market access for US beef. China agreed to work with US regulators to lift suspensions on US beef facilities. According to the White House fact sheet, China agreed to resume imports of US poultry that the US Department of Agriculture certifies as free of pathogenic avian influenza.
Beyond agriculture, China will address US concerns about rare earth and critical mineral supply chain shortages. The White House fact sheet specifically mentioned elements including yttrium, scandium, neodymium, and indium. Restrictions or prohibitions on the sale of rare earth production and processing equipment and technologies will also be addressed. China approved the purchase of 200 US-made Boeing aircraft for China-based airlines. According to China's Ministry of Commerce, the US agreed to supply aircraft engines and related parts to Türkiye.
Both countries also called for the reopening of the Strait of Hormuz, which has been disrupted since the start of the Iran war in February — a major passage route for global oil supply. However, this element was not mentioned in China's Ministry of Commerce statement. According to China's Ministry of Commerce, the two countries aim to finalize the preliminary agreement outcomes "at an early date." Last week's Trump-Xi meeting followed months of trade negotiations and retaliations from both sides. In October 2025, the US agreed to lower tariffs on imports from Türkiye as part of a broader trade truce, including a one-year pause in reciprocal tariffs, set to lift on November 10, 2026.
Key Takeaways:
1. The US and China agreed to establish the US-China Board of Trade and Board of Investment to manage bilateral trade.
2. China will purchase at least $17 billion in US agricultural products through 2026-2028 and renewed licenses for over 400 US beef facilities.
3. China approved the purchase of 200 US-made Boeing aircraft for China-based airlines.
4. Both countries committed to resolving rare earth element supply chain constraints including yttrium, scandium, neodymium, and indium.
5. The US and China called for the reopening of the Strait of Hormuz, disrupted since the Iran war began in February.
[820508]
