China and U.S. Relations

Ava Cai

May 16, 2025

After negotiations between U.S. and Chinese officials in Switzerland regarding the recent tariff war, President Trump agreed to reverse the tariffs from 145% to just 30%. China also removed a significant portion of its countervailing tariffs on the U.S. (from 125% to 10%), referring to the U.S.-China trade deal as a key victory and a temporary easing of the heightening trade war. In conclusion of the talks, Jamieson Greer, the U.S. Trade Representative, described a sense of mutual respect that had been established between the two countries. This trade truce for the time being will allow the two countries and the rest of the world a generous amount of time to discuss and create a permanent solution to tensions and pave the way for a “communication mechanism” for future related issues. Additionally, Matthew Shay, the National Retail Federation CEO, described the agreement as a “critical first step to provide some short-term relief for retailers and other businesses that are ordering merchandise for the winter holiday season.”

Despite improving relations between the two global powers, the United States and China are still striking subtle blows at each other in other areas. For example, the U.S. Commerce Department’s Bureau of Industry and Security accused Huawei’s Ascend AI chips of “abusing export control measures” and discouraged companies from using its products. In indirect retaliation, China stands on firm ground for the earth minerals critical to the United States. In response to President Trump’s declaration of “liberation day,” China halted exports of rare earth minerals to not just the U.S., but to all countries. These materials are crucial for the U.S., especially in its technology and aerospace developments. Further, China required companies that wanted to export these minerals to gain approval from their commerce ministry beforehand. Chinese officials regard these raw materials as leverage to be used during trade negotiations to favor China, although the country did agree to loosen restrictions as part of the most recent trade deal. Dennis Wilder, a former White House official, furthermore points out how China may be dangerously juggling the value of earth minerals to the United States, offering that if China overstretched its boundaries, the United States would look toward other sources for these resources, namely Canada. 

Although conflicting interests and action items still exist between China and the United States, the trade negotiation in Geneva significantly relieved immediate tension, and their relationship is heading in an open-minded direction.