US-China trade talks to continue as Washington presses Beijing to honour Busan deal

US-China agree to keep trade talks going

China and the US have agreed to continue consultations to ensure stable and positive trade relations, local media Xinhua reported.The development comes as Washington pushes Beijing to fulfil the commitments made under the trade truce agreed between US President Donald Trump and Chinese President Xi Jinping in Busan last year.The US has raised concerns that China is falling short of its promises on rare earth supplies, critical minerals and agricultural purchases.These concerns were discussed during a phone call on Friday morning between US treasury secretary Scott Bessent, US trade representative Jamieson Greer and Chinese vice-premier He Lifeng, who oversees trade negotiations with Washington.During the call, the US officials told China that it needed to fully deliver on the commitments made under the Busan agreement.

In a post on X on Friday, he said, “ Today, US trade representative Greer and I spoke with Vice Premier He Lifeng about the US-China economic relationship and implementation of the Busan arrangement.Bessent further raised concerns about China's recent actions. "I emphasized the importance of China fully and immediately honoring its commitments, raised concerns about recent Chinese actions and underscored that progress depends on concrete results.”

One of Washington's biggest concerns is China's supply of rare earths. US officials told the FT in September that China was meeting only about two-thirds of its commitments on rare earths under the Busan agreement.A person familiar with the matter said Beijing had not increased supplies even after Bessent raised the issue directly with He in New York in September, ahead of Xi's meeting with Trump in Washington.China has rejected the US claims that it is not meeting its promises on rare earth supplies.The two countries also differ over agricultural purchases. The US believes China has met its commitment to buy soyabeans but has not fulfilled its promises on other agricultural products.Washington is also concerned about China's restrictions on exports of yttrium to Japan. The rare earth is used in products ranging from jet engines to missiles. Japan makes components for products manufactured in the US, and Japanese companies have warned their government that their stockpiles of yttrium are running dangerously low.The Busan trade truce was agreed in October 2025 and was originally due to expire on January 10. However, during Xi's visit to Washington in September, the two countries extended the deadline by two months, until January 2027, after negotiators failed to resolve their differences.