The US and China have finalized a major trade and security agreement, with Beijing committing to purchase $17 billion in agricultural goods annually for three years and address critical rare earth supply chain issues.
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US-China pact secures $17 billion yearly in agriculture buys
The United States and China reached a series of agreements aimed at stabilizing economic relations, including a three-year agricultural purchase commitment from Beijing worth at least $17 billion annually and measures to secure the supply of critical rare earth minerals, the White House announced Sunday.
"The two leaders agreed that the US and China should pursue what they described as a constructive relationship based on strategic stability, fairness, and reciprocity," the White House said in a statement following the first visit by a US president to China since 2017.
The agreement also includes an initial purchase of 200 Boeing aircraft for Chinese airlines and the renewal of market access for more than 400 American beef facilities. To manage the new trade dynamics, the two nations established the US-China Board of Trade and the US-China Board of Investment.
The deal provides a significant boost for the US agricultural sector and aims to de-risk critical supply chains for the American technology and defense industries, which are heavily reliant on Chinese rare earths. The agreement marks a significant step in easing trade tensions that have created market uncertainty for several years.
Rare Earths and Aviation Deals
Under the terms of the agreement, Beijing will address US concerns over supply chain shortages and existing export controls on rare earth minerals, including yttrium, scandium, neodymium, and indium. These materials are vital for manufacturing semiconductors, electric vehicles, and advanced defense systems. The commitment follows years of US efforts to reduce its dependency on China, which dominates the global processing of these critical minerals. Separately, China's first commitment to purchase Boeing aircraft since 2017 is a major development for the US aerospace giant.
Agricultural Boost and New Trade Bodies
For the agricultural sector, China committed to purchasing at least $17 billion annually in US products for 2026, 2027, and 2028. This is in addition to soybean purchase commitments made in October 2025. The agreement also sees Beijing restoring market access for US beef by renewing expired listings and resuming poultry imports from US states cleared of avian influenza by the Department of Agriculture. The newly formed US-China Board of Trade will manage non-sensitive goods, while the Board of Investment will serve as a government-to-government forum for investment issues.
This article is for informational purposes only and does not constitute investment advice.
[1] China has agreed to address US concerns over rare earth shortages, says White House[2] White House fact sheet on Trump's China visit cites Iran agreement, trade ties; no mention of Taiwan[3] China to purchase $17 billion worth of US agricultural products annually: White House[4] From axles to rare earth: India draws up list of 100 products it still can't make enough of[5] Trump, Xi reached trade, security agreements during their summit in China: White House
