The Chinese government has eased trade tensions with the US and exempted export curbs to the European Union (EU) member countries.

This followed the meeting between US President Donald Trump and his Chinese counterpart Xi Jinping in October 2025.
The duo agreed to reduce the tariff imposed on each country and stop any further trade barriers for a year.
Donald Trump’s administration lowered the tariff imposed on Chinese goods to 45%, from 65% imposed in April 2025.
How China has eased trade tension with the US
On his part, Xi Jinping removed the export ban imposed on some crucial materials in the semiconductor industry to the US.
According to the BBC, the Jinping administration also suspended port fees charged on US-linked ships for a year.
The Asian country also suspended export bans on some rare earth materials and lithium batteries.
Has China lifted export ban on other countries
The European Commission (EU) also benefited from the Chinese government’s move to suspend export controls on some materials.
EU member states dealing in car manufacturing and production will no longer be hit after Beijing lifted the export ban on vital computer chips.
The export ban on chips exported by the Chinese-owned company Nexperia had caused tension in the European market, with companies like Volvo and Volkswagen raising concerns.
Jaguar Land Rover said the lack of chips posed a threat to its business, a concern that was backed by the European Automobile Manufacturers’ Association (EMEA).
However, according to the EU trade commissioner Maros Sefcovic, China agreed to grant an exemption from licensing requirements to any exporter.
“Close engagement with both the Chinese and Dutch authorities continues as we work towards a lasting, stable, predictable framework that ensures the full restoration of semiconductor flows,” Sefcovic wrote on his X platform account.
He added that trade stability and predictability are essential for Europe’s industrial base, supporting its global competitiveness.











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