US-China Trade Truce Offers Symbolic Relief, But Global Businesses Still Feel the Heat

Following the high-profile meeting between US President Donald Trump and Chinese President Xi Jinping at the APEC Summit in Busan, the two nations agreed to a one-year trade truce. The deal includes a pause on new tariffs, relaxed port fees, and resumed Chinese purchases of US soybeans. However, the underlying tensions remain unresolved, leaving global businesses in a precarious position.

European automakers, for instance, are grappling with a chip supply crisis after China restricted exports from Dutch-based Nexperia. Meanwhile, foreign investors in China remain cautious, wary of deflationary pressures and unpredictable policy shifts. Although Chinese equities have rallied, participation from global funds has been selective.

• Trade truce duration: One year, effective October 30, 2025  
• Key concessions: Pause on new tariffs, resumed rare earth exports, soybean purchases  
• Persistent issues: Export controls, tech restrictions, regulatory opacity  
• Sectoral impact: Auto, semiconductor, agriculture, shipping  
• Investor sentiment: Cautious optimism, selective re-entry into Chinese markets  

Sources: Firstpost, US News, FinancialContent, Al Jazeera, China Strategy