China Rare Earth Delay & U.S. Soybean Purchases Impact
By MD Rubel islam: Global Finance News
Updated: October 26, 2025 | 8:58 PM GMT+6
China delays rare earths rules, agrees to buy U.S. soybeans amid trade talks.
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- Primary Keywords (China, U.S., Rare earths, Soybeans, Trade talks, Licensing regime, TikTok, Trade deal, Purchases)
- Secondary Keywords (Scott Bessent, Treasury Secretary, Donald Trump, Xi Jinping, Malaysia, Kuala Lumpur, U.S. soybean farmers, CBS “Face the Nation”, ABC “This Week”, Expanded licensing, Ownership transfer)
- Industry / Category Keywords (Global trade, Tariff watch, Agriculture imports, Technology ownership, Rare earth minerals, Licensing rules)
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China Rare Earth Delay & U.S. Soybean Purchases: Will the New Trade Understanding Change the World?
Globally, politics, trade policies, and technological security are facing a new turning point. Following the recent U.S.–China trade talks held in Kuala Lumpur, several major decisions have emerged. Among these are the one-year delay of China rare earths licensing, the resumption of U.S. soybean purchases, and progress on TikTok ownership transfer.
In this article, we will analyze why these agreements could have unprecedented effects on global markets, agricultural commodities, technology, and geopolitics.
Global Trade Heating Up—China & U.S. Back at the Table
Tensions in global trade have persisted for years. Tariffs, technology blocks, and export controls have strained bilateral relations. Yet, at the trade talks in Kuala Lumpur, both sides showed some flexibility.
Why Malaysia and Kuala Lumpur were chosen:
Neutral diplomatic ground
South-East Asia trade hub
Peaceful environment for discussions
Reuters reports that these talks were strategic and unprecedented.
Rare Earths Licensing Rules Delay—What’s the Benefit for the U.S.?
China produces over 70% of the world’s rare earth minerals, which are essential for:
Batteries
Chips
Defense tech
Smartphones
EV motors
If China’s expanded licensing regime had taken effect, it would have put pressure on the U.S. But with a one-year delay:
U.S. semiconductors get breathing room
Global supply chain anxiety is reduced
Technology ownership tensions are eased
This signals the potential for new agreements on licensing rules in the future.
U.S. Soybean Farmers—Why Are They Smiling?
Following a potential announcement by President Donald Trump and President Xi Jinping, U.S. soybean purchases are expected to be “substantial” for several years.
Benefits include:
Farmers profitAgricultural market revived
Strengthened U.S. rural economy
These agriculture imports indicate both economic and political success.
Scott Bessent—The Silent Architect of the Decision
U.S. Treasury Secretary Scott Bessent confirmed these details on CBS “Face the Nation” and ABC “This Week.”
He highlighted:
Rare earths licensing delay
TikTok U.S. ownership progress
Multi-year soybean contracts
Bessent’s comments have instilled confidence in the markets.
TikTok U.S. Ownership—A Technology Security Game-Changer
The ownership transfer of TikTok is critical for long-term data security in the U.S.
Reasons include:
User-data protection
AI algorithm transparency
Social media influence control
Due to the Trump administration’s interest, this process is moving quickly.
Why Did China Grant This Concession?
Analysis points to four reasons:
Economic Stability
China wants to keep its current GDP stable.
Export Pressure
Excessive control over rare earth exports could harm business.
Agriculture Bargaining
Technical advantages could be gained in exchange for soybeans.
Diplomacy
China’s image softening is needed in global tariff watch.
Germany Rethinks China Ties—A Strategic Context
The EU’s largest economy, Germany, is also evaluating its approach to China amid trade pressures and global supply chain concerns. This development highlights the broader geopolitical context of these U.S.–China deals, showing how major economies are reassessing their strategies regarding Chinese markets and rare earth dependencies.
Global Tariff Watch—Which Sectors Are Heating Up?
According to Tariff Watch newsletter analysts:
Battery metals
EV industry
Semiconductor supply chain
Defense tech
In all these areas, the rare earth delay is creating new tension.
Washington’s Political Gain
Washington will use this deal as a political success, particularly in:
Rural farmer votes
National security narratives
U.S. leadership image
Moreover, the United States aims to revitalize its domestic economy.
Malaysia—A New Beneficiary of the Deal
Holding talks in Malaysia has positioned the ASEAN region as:
Trade logistics center
Manufacturing shift hub
Kuala Lumpur is now in greater focus.
China Rare Earth Delay and Global Market Reaction
Consequences of the delay include:
Temporary stabilization of rare earth prices
Increased confidence for EV manufacturer
Reduced stock market volatility
This opens a new chapter for technology ownership issues.
Secondary Factors—Not to Be Overlooked
Uncertainty in expanded licensing
Legal hurdles for ownership transfer
Currency fluctuations affecting agriculture imports
These factors could shake the trade deal in the future.
Why CNN Labels TikTok Ownership a Security Threat
Reasons:
Data usage pattern analysis
Youth political influence
AI recommendation bias
Thus, Washington is compelled to take a strict stance.
Trump–Xi Announcement—When, Why, and How
Next Thursday, both leaders are expected to issue a joint statement, according to Reuters. Global attention will focus on this announcement.
The statement will include:
Soybean purchase roadmap
Rare earth licensing outline
TikTok ownership timeline
U.S. Soybean Farmers—How Did Their Year Fare?
CBS “Face the Nation” reported:
Farmers now “feel very good”
Multi-year confidence returns
Rural economic relief
This will have significant political implications.
Future Outlook—Expert Predictions
Experts suggest:
China may offer more licensing flexibility
Annual soybean imports may increase
TikTok may rebrand under U.S. management
Negative Possibilities
Not all is smooth sailing:
Sudden tariff spikes
Tech espionage concerns
Political power shifts
These could reverse progress.
Conclusion—Who Won This Round?
Current assessment:
U.S. soybean farmers gained
China obtained diplomatic leverage
Tech security tightened
Rare earth market stabilized
The ongoing battle continues in technology, chips, AI, and data.
Notes:
“Germany Rethinks China Ties” is placed in the most strategic section after explaining China–U.S. trade dynamics, so readers clearly see the European angle.
Read more details China Delays Rare Earth Rules, Buys U.S. Soybeans
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