US Demands China Fulfil Promises Regarding Purchase of Agricultural Products and Rare Earths

The United States administration has urged China to immediately and fully fulfil its commitments under a trade agreement reached a year ago in Busan, South Korea. According to a Bloomberg report, the US has expressed particular concern over Beijing's recent actions regarding the purchase of agricultural products, rare earths, and other critical minerals.

US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer discussed these issues via video call with Chinese Vice Premier He Lifeng. According to details released by the Treasury Department on Friday, Bessent emphasised that Beijing needs to implement its commitments fully and immediately. He further added that Washington would evaluate China's compliance based on concrete results. Bessent clarified, "Continued progress depends on concrete results."

On the other hand, Jamieson Greer, through his office, stated that China needs to take concrete steps to honour its promises, specifically including agricultural purchases and rare earths as well as other critical minerals. According to a statement from the Office of the US Trade Representative, Greer stressed the importance of full implementation of China's past commitments during the call.

According to the Bloomberg report, China also expressed its concerns during this discussion. According to a Saturday report by the government news agency Xinhua, both sides exchanged views on recent US trade and economic sanctions, with Beijing expressing "serious concern." These discussions were described as candid and constructive, and both sides agreed to increase cooperation and manage their differences.

This sequence of events comes at a time when there is uncertainty regarding the implementation of the trade truce between the world's two largest economies. US President Donald Trump and Chinese President Xi Jinping had agreed to extend this arrangement until 10 January to prevent tariff hikes and ensure the continued flow of rare earths.

Bessent, Greer, and He Lifeng had previously met in New York in September before the meeting between Trump and Xi, which both sides described as productive. However, Washington continues to raise objections over delays in some of China's commitments. In an interview with Bloomberg in October, Greer stated that the US is receiving rare earths from China, but the supply is not arriving at the determined volume or pace. Greer also pointed towards implementation discrepancies within the Chinese administration, noting that some government departments are active while others seem more bureaucratic.

When the trade truce was extended in September, Bessent noted that the delivery of some commitments by China was incomplete, particularly regarding agricultural purchases. However, he also mentioned that Beijing is purchasing US soybeans in significant quantities.

This warning comes two weeks before the expected meeting between Trump and Xi at the Asia-Pacific Economic Cooperation (APEC) summit to be held in Shenzhen. Bessent had previously indicated that he might hold further discussions with He Lifeng during this summit, which could also include the US-China Artificial Intelligence dialogue announced in September.

There is also a short-term deadline for this trade agreement. Tariff exemptions for certain Chinese products are set to expire on 10 November, and US officials have not yet indicated whether these exemptions will be extended. Industry groups, including the Consumer Technology Association, have criticised this uncertainty, arguing that these exemptions are critical for supply chains.

If there is any disruption in this arrangement, it could reignite concerns among businesses and financial markets about a prolonged trade conflict between Washington and Beijing. The Trump administration has sought to avoid a situation that could put additional pressure on the US economy. Bessent, who is leading the Trump administration's engagement with China, has also criticised Beijing over the trade imbalance.