At the high-stakes Trump-Xi summit on October 30, 2025, the leaders of the US and China agreed to a one-year deal securing China’s supply of rare earths to the US. President Trump described the deal as ‘routinely extendable,’ signaling some willingness for ongoing cooperation, though deeper disputes remain unresolved.

The spotlight is on rare earths, vital for US tech giants like Nvidia and essential in AI, EVs, and defense. The deal should help stabilize supply chains in the short run, as rare earth materials are critical for advanced electronics and military technologies. Yet, because it only covers the next year, uncertainty lingers about what happens after the agreement expires.

Beyond rare earths, major sticking points persist. The US has not rolled back tariffs on Chinese goods or eased restrictions on China’s access to advanced technologies. China, on its end, continues to push back against lifting tariffs on its exports and maintains tight controls on US agricultural and industrial imports.

Markets responded positively in the short term, with tech stocks including Nvidia seeing a modest bounce following the agreement. Still, investors remain cautious, knowing that disruption could return swiftly if talks break down or the deal isn’t renewed next year.

In summary, the Trump-Xi meeting has de-escalated immediate trade threats, but long-term US-China tensions around tech and tariffs are far from resolved. Businesses and investors would do well to stay alert as the situation evolves.