Washington is turning up the pressure on Beijing to deliver on its promises under last year’s Busan trade agreement, warning that continued progress in US-China relations depends on concrete action. With rare-earth supplies, agricultural purchases and tariff reductions still under discussion, the latest warning raises concerns about whether the fragile trade truce between the world’s two largest economies can survive another round of disagreements.
The United States has delivered a fresh warning to China, demanding that Beijing immediately fulfil its commitments under the trade agreement reached by President Donald Trump and Chinese President Xi Jinping in South Korea last year.
The message came during a phone conversation on Friday, November 6, involving US Treasury Secretary Scott Bessent, US Trade Representative Jamieson Greer and Chinese Vice Premier He Lifeng.
According to the US Treasury Department, American officials expressed concerns about China’s recent actions and stressed that Washington expects Beijing to honour the commitments it made under the Busan trade arrangement.
The warning comes at a sensitive moment for the global economy. Both countries are attempting to prevent another escalation in their trade conflict, but disagreements over critical minerals, agricultural purchases and tariffs continue to complicate their relationship.
For Washington, the issue is no longer simply about negotiating better trade conditions. It is about ensuring that China delivers on the promises that helped prevent a deeper economic confrontation.
Why Is Washington Pressuring Beijing Again?
The latest warning reflects growing American frustration over what US officials describe as incomplete implementation of the Busan agreement.
The arrangement was negotiated in October 2025 during a meeting between Trump and Xi Jinping in Busan, South Korea. The agreement was designed to ease tensions following months of tariff increases and restrictions affecting trade between the two countries.
Under the arrangement, both governments agreed to take steps to reduce economic pressure and improve access to important products.
However, Washington believes China has not fully delivered on several commitments, particularly those involving rare-earth exports, other critical minerals and purchases of American agricultural products.
After Friday’s discussions, Bessent made his position clear, saying that China needed to honour its commitments fully and immediately.
The Treasury Department also warned that the United States would closely assess Beijing’s implementation of the agreement.
The message suggests that Washington is becoming less willing to accept promises without measurable progress.
Rare Earth Minerals Become the Biggest Point of Tension
One of the most important disagreements involves rare-earth elements and other critical minerals.
These materials are essential to several modern industries, including electric vehicles, smartphones, defence equipment, renewable energy systems and advanced manufacturing.
China occupies a powerful position in global rare-earth processing and supply chains. That influence gives Beijing considerable leverage in international trade negotiations.
During the earlier trade tensions, Chinese export restrictions created concerns among American manufacturers that depend on reliable access to these materials.
The Busan arrangement was intended to ease some of those restrictions and improve the movement of critical minerals.
However, American officials have continued to complain that US companies are struggling to receive sufficient quantities of certain materials.
The Financial Times reported that Washington remains concerned about shortages and delays involving Chinese rare-earth exports. Restrictions affecting yttrium shipments to Japan have also added to concerns about wider supply disruptions.
For the Trump administration, the issue is particularly sensitive because shortages of critical minerals could affect American manufacturing and national security.
Washington wants China to turn its commitments into actual shipments rather than leave them as diplomatic assurances.
American Farmers Are Also Waiting for China’s Promised Purchases
Rare earths are not the only issue creating friction between the two governments.
American agricultural exports have become another important part of the trade disagreement.
Under the Busan arrangement, China committed to purchasing 25 million metric tons of US soybeans over three years. It also agreed to increase purchases of other American agricultural products by approximately $17 billion.
The commitments were intended to provide American farmers with greater access to the Chinese market.
For US farmers, China represents an important export destination, particularly for agricultural commodities such as soybeans.
However, Washington has raised concerns about the pace and extent of China’s agricultural purchases.
The Trump administration wants Beijing to meet its commitments, arguing that American farmers and agricultural businesses should benefit from the trade agreement.
China, however, has indicated that it is willing to purchase additional American farm products only if both sides implement their reciprocal tariff-reduction commitments.
This difference in expectations has created another obstacle.
Washington wants China to deliver on agricultural purchases, while Beijing insists that American tariff concessions must also be honoured.
China Pushes Back Against US Trade Restrictions
Beijing has not accepted Washington’s criticism without raising its own concerns.
During the discussions, Chinese officials reportedly expressed serious concerns about recent American trade restrictions targeting China.
The Chinese government has argued that trade agreements should be implemented through mutual cooperation rather than one-sided demands.
China’s Commerce Ministry has also indicated that Beijing remains open to expanding agricultural purchases from the United States, provided both countries implement their agreed reciprocal tariff reductions.
This position reflects a broader disagreement over how the Busan agreement should operate.
Washington wants China to accelerate its deliveries and purchases, while Beijing wants clearer progress on the American side of the arrangement.
Both countries therefore face a difficult balancing act: protecting their domestic economic interests without triggering another trade confrontation.
What Was Agreed Under the Busan Trade Truce?
The Busan arrangement emerged after a period of escalating trade tensions between Washington and Beijing.
During Trump’s second presidency, the United States introduced higher tariffs on Chinese imports. China responded with its own trade measures, including restrictions affecting important materials and supply chains.
The agreement reached in October 2025 was designed to reduce these pressures.
Its major elements included:
- Tariff relief: The arrangement capped US tariffs on Chinese goods at approximately 20%, according to reporting on the agreement.
- Soybean purchases: China committed to buying 25 million metric tons of American soybeans over three years.
- Agricultural trade: Beijing agreed to increase purchases of other US agricultural products by approximately $17 billion.
- Critical minerals: China agreed to ease restrictions affecting rare earths and other important materials.
- Trade cooperation: Both governments committed to maintaining dialogue to prevent further escalation.
The agreement is scheduled to expire on January 10, 2027, making the coming weeks particularly important for both sides.
A proposed package involving approximately $60 billion in reciprocal tariff reductions has also been discussed, but it has not yet been finalised.
Trump and Xi Face Another Important Test
The latest disagreement comes ahead of expected meetings between Trump and Xi at international gatherings in November and December.
The two leaders are expected to have opportunities to discuss trade relations during the Asia-Pacific Economic Cooperation summit in Shenzhen on November 18 and 19, followed by the Group of 20 summit in Miami on December 14 and 15.
These meetings could provide an opportunity to address the outstanding commitments and prevent the trade truce from falling apart.
However, the current disagreements suggest that another presidential meeting will not automatically resolve the problems.
Both leaders face pressure at home.
Trump wants to demonstrate that his trade policies are delivering benefits for American manufacturers, farmers and workers. Xi, meanwhile, wants to protect China’s economic interests and avoid accepting trade conditions that Beijing considers unfair.
The challenge will be finding a compromise that allows both governments to claim progress without reopening the trade war.
Could Another US-China Trade War Affect the Global Economy?
The consequences of a breakdown in the Busan agreement could extend far beyond Washington and Beijing.
The United States and China are major players in global manufacturing, agriculture, technology and international trade.
Any renewed tariff escalation could increase costs for businesses, disrupt supply chains and create uncertainty for investors.
Industries dependent on rare-earth minerals could be particularly vulnerable. Electric vehicle manufacturers, electronics producers and defence contractors all require access to specialised materials.
American farmers could also face difficulties if Chinese purchases decline or trade restrictions return.
For other countries, including India, renewed US-China tensions could create both challenges and opportunities. Supply-chain disruptions may affect global manufacturing, while companies seeking alternatives to Chinese suppliers could explore production and investment opportunities in other markets.
However, prolonged economic confrontation between the world’s two largest economies would create uncertainty for international businesses and trading partners.
Conclusion: The Busan Trade Truce Faces Its Biggest Test Yet
The latest US warning shows that the agreement reached by Trump and Xi in Busan remains fragile.
Washington wants Beijing to deliver on promises involving rare-earth supplies, critical minerals and American agricultural purchases. China, meanwhile, expects the United States to honour its own tariff-reduction commitments.
Neither side appears eager to return to a full-scale trade war, but both governments are determined to protect their economic interests.
The coming weeks could therefore prove decisive for the future of US-China trade relations.
If both countries translate their promises into concrete action, the Busan agreement could provide a foundation for more stable economic relations.
If disagreements continue, however, the trade truce could become another temporary pause in a much larger economic rivalry.
For now, the message from Washington is clear: diplomatic promises are no longer enough. The United States wants Beijing to deliver.