Arabfields, Farah Benali, Economic Correspondent, China — China and the united states are facing renewed pressure to honour their trade commitments as both countries prepare for another high-level meeting between President Donald Trump and Chinese President Xi Jinping in Shenzhen next week. Despite recent efforts to ease tensions, disagreements over agricultural purchases, tariff reductions and critical mineral exports continue to threaten the fragile trade relationship.
During a recent video conference, US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer urged Chinese Vice-Premier He Lifeng to accelerate the implementation of previous commitments, particularly those involving American agricultural products and rare earth minerals. Beijing, however, has made it clear that further purchases of US goods will depend on Washington delivering its own promises, including reciprocal tariff reductions.
At the centre of the dispute is a proposed arrangement covering $30 billion worth of products on each side. China wants the United States to implement the agreed tariff concessions before expanding its purchases of American agricultural commodities. Washington, meanwhile, argues that Beijing must first demonstrate concrete progress on commitments already made.
The disagreement is becoming increasingly important for American farmers. China had pledged to purchase $17 billion worth of US agricultural products annually from 2026, alongside a separate commitment involving soybeans. However, the pace of purchases has raised concerns among agricultural exporters.
Between January and September 2026, China purchased only $7.2 billion in non-soybean agricultural products from the United States, according to available trade figures. The relatively weak performance has increased uncertainty among producers who depend on the Chinese market to sell crops, meat and other agricultural commodities.
For farmers in the American Midwest, the dispute is more than a diplomatic disagreement. Lower export demand can translate into reduced income, growing inventories and additional pressure on operating costs. Higher fuel expenses have already complicated the financial outlook for many agricultural businesses, making access to major international markets particularly important.
The stakes are equally significant for Chinese manufacturers. Rare earth elements and other critical minerals remain essential to industries producing electric vehicles, electronics, renewable energy equipment and advanced technologies. Any interruption in supplies could increase costs for American companies and complicate efforts to diversify industrial supply chains.
China’s broader economic position also adds another dimension to the negotiations. Its trade surplus reached approximately $1.04 trillion during the first ten months of 2026, supported by strong international demand for manufactured and technology-related products. Exports increased by 35.2% year on year in October, highlighting the continued importance of overseas markets to the Chinese economy.
However, a growing reliance on exports could expose Beijing to additional trade restrictions, particularly as Washington and other major economies seek to protect domestic industries. For American businesses, the challenge is to maintain access to Chinese suppliers while reducing their exposure to strategic supply disruptions.
The upcoming Trump-Xi meeting is therefore expected to focus not only on tariff policy but also on the practical implementation of existing agreements. Both governments have incentives to avoid another escalation, especially as companies on both sides seek greater certainty over investment, production and international shipments.
Looking ahead to 2027, the outlook will largely depend on whether the two countries can translate diplomatic commitments into measurable commercial results. If the proposed tariff reductions are implemented, Chinese purchases of American agricultural products could gradually increase, providing some relief to US producers. Greater cooperation on rare earth exports could also help stabilise industrial supply chains.
Nevertheless, continued delays could produce the opposite outcome. Additional trade restrictions, weaker agricultural orders and uncertainty over mineral supplies could put renewed pressure on businesses and increase the risk of another round of economic confrontation.
For now, farmers, exporters and manufacturers on both sides are waiting for more than political assurances. They want clear deadlines, lower trade barriers and reliable access to markets. The coming summit could offer an opportunity to restore confidence, but the real test will be whether Washington and Beijing are prepared to deliver on the promises they have already made.
