Why China holds the trump card in trade talks with the US
Beijing’s command of rare earths and its weight as a major consumer of commodities provide it crucial bargaining chips
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[SINGAPORE] The US and China have extended their trade truce to Nov 10, 2025, averting another round of sweeping tariff escalation. That means the existing tariff framework remains unchanged: The United States maintains a 30 per cent levy on Chinese imports, while China continues to impose a 10 per cent tariff on American goods.
The US tone has shifted markedly in recent months. In April, China was the only major economy to confront Washington’s tariff policies, engaging in tit-for-tat retaliation that pushed levies above 100 per cent. By August, while the US imposed new tariffs on other trading partners, China received a temporary reprieve, with the tariff pause extended to allow more time for negotiations.
The most significant contrast is with India, which faces a renewed 50 per cent tariff over its purchases of Russian oil and weapons, an outcome that China has so far avoided, despite also sourcing oil from Russia. Why is US President Donald Trump taking a softer approach with Beijing?
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