According to Bloomberg's report on July 16, U.S. Trade Representative Jamieson Greer said that it is expected that China and the United States will evaluate whether China has fulfilled its commitments under the tariff truce agreement signed in October last year, which involves delaying the implementation of restrictions on rare earth exports for one year. Greer stated that Beijing's compliance was "not perfect," but both countries are working together to bridge the existing gaps.
He said: "China faces many challenges in various aspects that are similar to those faced by the United States, but we hope to ensure a stable bilateral relationship."
According to reports, however, officials in the Trump administration are increasingly dissatisfied with Beijing for not fulfilling its commitments in accordance with the US understanding of the agreement. Nevertheless, Washington is reluctant to publicly criticize China, in order to avoid pushing the two countries into another trade war.
The pharmaceutical industry is another point of pressure. China is an important supplier of active pharmaceutical ingredients and other raw materials required for pharmaceuticals. At least one key ingredient for nearly 700 types of drugs in the United States can only be obtained from China.
Grier stated that currently, 17 pharmaceutical companies have promised to produce and manufacture products for return to the United States.
He said, “We have thought about this extensively. This is indeed crucial, because ultimately, if we cannot obtain raw material supplies from China, our own manufacturing foundation will face significant challenges.”
The Chinese Ministry of Commerce stated that, in accordance with the consensus reached during the Sino-US economic and trade consultations in Kuala Lumpur, China will suspend certain export control measures announced on October 9, 2025, until November 10, 2026. The two sides will continue to communicate regarding their respective concerns through the economic and trade consultation mechanism.
