Washington issued a direct warning to Beijing on Friday, demanding full compliance with the Busan trade truce. US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer spoke with Chinese Vice Premier He Lifeng, the official overseeing trade negotiations. They didn't mince words. Bessent stated on X that the US expects China to "fully and immediately honor its commitments," adding that progress hinges on concrete results, not further delays.
The friction centers on raw materials. US officials told the Financial Times in September that China was meeting only about two-thirds of its rare earth supply pledges under the Busan agreement. This wasn't a new complaint. Bessent raised the issue directly with He Lifeng in New York last month, just before Xi Jinping met Donald Trump in Washington. Yet, according to a person familiar with the matter, Beijing has not increased supplies since that confrontation. China rejects these claims, maintaining it is meeting its obligations.
The dispute extends beyond minerals to farmers' fields. Washington believes China has hit its soybean purchase targets but is falling short on other agricultural products. A more niche but critical issue involves yttrium, a rare earth essential for jet engines and missiles. Japan, which manufactures components for US products, has warned its government that yttrium stockpiles are running dangerously low due to Chinese export restrictions.
The Busan deal, struck in October 2025, was originally set to expire on January 10. Negotiators failed to resolve their differences, prompting an extension of two months to January 2027 during Xi's September visit to Washington. With the clock ticking toward that new deadline, both sides have agreed to continue consultations to ensure the relationship remains stable. The next move likely lies in whether Beijing adjusts its export policies before the truce faces its final test.