Briefing Note: Xi–Trump Bilateral Trade Agreement, Nov. 4, 2025

By Matthew R. Miller, Adam Najberg and Judy Zhang, CorpBridge Advisors

Executive Summary

The framework trade agreement reached by President Xi Jinping and President Donald Trump on the sidelines of the APEC Summit in Busan on October 30 marks a tactical de-escalation in U.S.–China commercial relations. The deal rolls back tariffs to the pre-Trade War status quo, suspends non-tariff measures impacting the Chinese export of rare earth materials and U.S. rules sanctioning Chinese entities. It also includes purchase agreements for U.S. agricultural products and commitments to halt the export of precursor chemicals for fentanyl. Measures on shipbuilding and port fees were also addressed. 

The agreement stipulates a narrow one-year suspension for most actions and unexpected developments may derail this delicate framework. Both presidents, however, emphasized the importance of stabilizing commercial ties and restoring channels for dialogue. We do not anticipate escalatory actions by either government prior to President Trump’s planned visit to China early next year. 

For U.S. and Chinese companies, this period presents a critical opportunity to reassess short-term business strategies, shore-up capital fundraising and supply chains, and advance stakeholder outreach. Companies also must balance engagement optimism with scenario-based risk planning. 

This briefing note outlines headline results from the meeting and provides suggested action items. 

Key Takeaways

According to White House and China’s Foreign Ministry statements, the framework agreement stipulates the following: 

• The U.S. will reduce tariffs on Chinese imports imposed to curb fentanyl flows from 20 percent to 10 percent.

• The U.S. will extend the expiration of certain Section 301 tariff exclusions until Nov 10, 2026 from November 29, 2025.

• China will suspend retaliatory tariffs on U.S. goods, including U.S. agricultural products.

• China will suspend the global implementation of new export controls on rare earths and related measures, and issue general licenses for the export of rare earths, gallium, germanium, antimony, and graphite to U.S. end users.

• China will take measures to stop the shipment to North America of precursor chemicals for the manufacture of fentanyl.

• China will purchase 12 million metric tons (MMT) of U.S. soybeans during the last two months of 2025 and purchase at least 25 MMT of U.S. soybeans in 2026, 2027 and 2028. China also will resume purchasing other U.S. agricultural products.

• The U.S. will suspend for one year the expansion of end-user controls that cover affiliates of sanctioned Chinese entities. 

• China will terminate investigations of U.S. companies in the semiconductor supply chain.

• The U.S. will suspend for one year the implementation of Section 301 investigations of China’s targeting the maritime, logistics, and shipbuilding sectors. China will also remove measures it took in retaliation to the U.S. action. 

  
  

Several critical issues were not discussed. They include Taiwan, which remains a highly sensitive matter for the Chinese government, and the proposed agreement to sell ownership of TikTok. Industrial subsidies, market access barriers and cyber espionage also were not part of the agenda.

For U.S. Companies Operating in China

The framework agreement should improve conditions for American businesses operating in China and will provide an opportunity to deepen engagement with key government and local community stakeholders. We recommend the following actions: 

• U.S. companies should rebuild relationships with local government officials and regulators through renewed engagement.

• Iconic American consumer goods and retail companies should leverage the fresh opportunity to amplify public awareness of their brands by escalating use of social media and social media influencers.

• Technology companies, while expecting fewer regulatory challenges as confrontation subsidies, should continue to localize and diversify supply chains in anticipation of renewed tensions.

• All companies should continue to localize production and deepen East-for-East practices.

• Frame engagement around shared global challenges such as climate, AI governance and sustained growth. Sustainability and advanced manufacturing credentials remain important and underscore the mutual benefits of cross-border investment. 

• Avoid politically sensitive narratives; emphasize mutual benefit and transparency.

• Develop internal alignment across business units to ensure consistent messaging.

  
  

For Chinese Companies Operating in the U.S.

The framework agreement presents opportunities to re-engage with capital markets and North American investors, who are returning to the China growth story, while undertaking selective engagement to build confidence with U.S. regulators, lawmakers, and other critical stakeholders. 

Important themes should include job creation, particularly for highly-skilled positions, and increased investment in local communities, which raises standards of living and local tax revenue. 

Chinese businesses must continue to build trust among all of its stakeholders and be aware that distrust of Chinese companies remains strong. We recommend the following actions:

• Chinese companies should proactively engage sector and industry trade groups.

• Chinese firms should also engage with federal, state, and local elected officials and regulators; and participate in community and civic activities.

• Develop and socialize content about how their businesses serve clients.

• Critical themes may include job creation, tax revenue, community investment and future investment.

• Activate U.S. business partners to support your company and its mission. 

• Continue to seek capital raising for expansion while conditions allow.

• For Chinese companies planning to list on U.S. exchanges, an early understanding of listing requirements is critical–listing rules for foreign and Chinese companies continue to evolve.

  
  

Recommended Actions for All Companies

• Track follow-up releases from China’s Ministry of Commerce and Ministry of Foreign Affairs, alongside the White House, Department of Commerce, and Department of Treasury.

• Conduct policy-risk audits for tariff exposure and critical-mineral dependencies.

• Corporate Affairs and Government Relations teams should continue to focus on aligning business narratives with bilateral cooperation priorities such as climate action, green supply chains, and trade facilitation while remaining alert to ongoing structural tensions in technology, security, and data governance. 

• Prepare contingency scenarios in case of renewed escalation.

For more information, contact:

Bob Christie: bob@corpbridgeadvisors.com

Matthew Miller: matthew@corpbridgeadvisors.com

Adam Najberg: Adam@corpbridgeadvisors.com

Judy Zhang:  judy@corpbridgeadvisors.com