[US-China Summit] China to Purchase $17 Billion in US Agricultural Products Annually...Real Gains for Beijing

Fact Sheet on U.S.-China Summit Released

Agreement Reached on New Trade and Investment Commissions

Tariff Reductions on Agricultural Products and More Expected


Structural Trade Conflicts Remain Unresolved

"China Gains Extension of Last Year's Truce"

Experts Raise Concerns Over Taiwan Issue

On May 17 (local time), the White House released a fact sheet outlining the results of the U.S.-China summit, including China's commitment to purchase at least $17 billion (approximately 2.55 trillion yen) worth of U.S. agricultural products annually through 2028. The two countries also agreed to establish a trade commission to handle future trade-related discussions. However, experts assessed that there was a lack of breakthroughs on key issues, such as a concrete Chinese commitment regarding rare earth supply chains or detailed agreements on tariff reductions.

White House: "Historic Achievements"

According to the White House fact sheet released under the title "President Donald J. Trump Secures Historic Deals with China," China has agreed to purchase at least $17 billion worth of U.S. agricultural products annually from 2026 to 2028. This is in addition to the previously promised U.S. soybean purchases agreed upon at the summit in Busan last October. The year 2028 marks the de facto final year of President Trump’s second term in office.

The two countries also agreed to establish both a U.S.-China Trade Commission and an Investment Commission. The White House explained that the trade commission will manage the exchange of "non-sensitive goods." According to an earlier statement from China's Ministry of Commerce, the commission will handle negotiations on mutual tariff reductions for certain products, as well as broad-based tariff reductions on agricultural goods and other items. Previously, a foreign media outlet reported that both countries had been discussing tariff reductions on non-sensitive items, each worth about $30 billion (approximately 4.5 trillion yen). However, neither the U.S. nor Chinese announcements included specific details about the exact items, amounts, or quantities.

Another achievement highlighted by the White House is the relaxation of restrictions on U.S. beef exports. China will renew export permits for more than 400 U.S. beef facilities whose registrations have expired and will add new registrations. The agreement also states that China will work with U.S. regulatory authorities to lift all restrictions on U.S. beef facilities. Additionally, imports of poultry from certain U.S. states designated as highly pathogenic avian influenza (HPAI)-free by the U.S. Department of Agriculture (USDA) will resume.

China also agreed to purchase 200 Boeing aircraft. However, this figure falls short of the 500 aircraft expected by the market. In fact, Boeing's stock price dropped by 4.73% on May 14 and 3.80% on May 15 compared to the previous trading day. Nonetheless, President Trump stated on his return trip that China could increase its purchases to up to 750 aircraft. The White House also addressed the issue of rare earths and critical minerals, which China had previously used as a retaliatory measure during last year's trade war, stating only that "China will address U.S. concerns over supply chain shortages regarding yttrium, scandium, neodymium, indium, and other materials."

In the area of security, the White House said the two countries agreed they cannot tolerate Iran possessing nuclear weapons and called for the reopening of the Strait of Hormuz. They also agreed on the principle that no transit fees should be imposed on the Strait of Hormuz. Regarding North Korea, the White House reported that both leaders reaffirmed their "shared goal" of denuclearizing North Korea. Previously, China's state-run Xinhua News Agency briefly reported that the two leaders had exchanged views on the situation in the Middle East, the Ukraine crisis, and issues concerning the Korean Peninsula.

The White House emphasized, "President Trump and President Xi agreed that the United States and China must build a constructive relationship of strategic stability based on fairness and reciprocity." The phrase "constructive relationship of strategic stability" was first mentioned by Chinese President Xi Jinping during the summit, and the U.S. adopted it as is. The White House also highlighted President Xi's promise to visit Washington in September as a major achievement.

Experts: "Limited Achievements"

U.S. President Donald Trump (right) and Chinese President Xi Jinping are attending the schedule of the second day of their summit at the garden in Zhongnanhai, Beijing, on the 15th. Photo by AP Yonhap News

While the Trump Administration presented the results of this summit as "historic," U.S. experts have evaluated the outcomes as having contributed to stabilizing the relationship, but said that substantive economic gains were limited. Other than agricultural and Boeing purchases, few solutions were offered to address structural trade conflicts. The fact sheet also did not include specific achievements in U.S. energy sales, which senior officials from the Trump Administration had previously promoted.

Kurt M. Campbell, chairman and co-founder of The Asia Group (TAG), commented in a foreign press briefing, "The outcomes of this summit were relatively modest," adding, "Some progress was visible in agricultural sales and other areas." However, he also noted, "Now we are looking toward President Xi’s visit to Washington, which has even been scheduled for the specific date of September 24," highlighting that it is unusual for China to set such a concrete date so far in advance.

Christopher Johnson, chairman of the China Strategies Group and former CIA lead analyst for China, told the Financial Times (FT) that the economic results for the U.S. were "much more ordinary." He also pointed out, "The fact that only minimal purchase commitments were made suggests that the Trump team did not want to easily grant China a long-term ceasefire extension and preferred to maintain pressure on rare earth issues." The two countries had agreed to a one-year ceasefire last October, but while China wanted to extend this through the end of Trump’s term, the U.S. was reluctant to make a long-term commitment in order to retain negotiating leverage, FT explained.

Some analysts believe China achieved more economic gains by maintaining the tariff war truce. Scott Kennedy, senior adviser and expert on the Chinese economy at the Center for Strategic and International Studies (CSIS), said in a discussion, "Overall, from China's perspective, this was a 'grand bargain,' and China did quite well on the economic front." He added, "China gave up very little and, in particular, gained the important extension of the Busan truce," while noting, "Meanwhile, issues such as industrial policy, global imbalances, and China's 'economic red lines' were hardly discussed."

Meanwhile, President Trump’s remarks on the Taiwan issue during the summit have raised concerns among experts. Campbell commented, "From the perspective of allies, there was somewhat of a ‘G2’ feeling, giving the impression that the two superpowers are making decisions that affect Asia. Allies may think they have avoided the worst, but at the same time, they likely feel uneasy." Ryan Hass, a China expert at the Brookings Institution in Washington, D.C., pointed out, "By raising doubts about the continuation of the U.S.'s existing cross-strait policy, President Trump is opening the way for Beijing to simultaneously pressure Washington and Taipei."

This content was produced with the assistance of AI translation services.