U.S. and China Strike Trade Deal — Export Controls Front and Center

Nov. 4, 2025
By: Marvin E. McPherson

Export Controls have jumped to the top of the trade toolbox used in negotiating with China, as evidenced in the apparent agreement struck last week. The White House released a factsheet, outlining the commitments from China and corresponding U.S. actions. Front and center to the agreement is the suspension of the BIS Entity List 50 percent rule and the China’s suspension of the rare earth minerals controls.

Specifically, according to the fact-sheet China will suspend global implementation of its new export controls on rare-earths and related minerals, announced October 9, 2025. China will issue general licenses for exports of rare earths, gallium, germanium, antimony, and graphite for U.S. end users and their supply-chains, effectively removing controls China had imposed in April 2025 and October 2022.

Regarding U.S. exports, China will suspend all retaliatory tariffs it announced since March 4, 2025 (on chicken, wheat, corn, cotton, soybeans, pork, beef, aquatic products, fruits, vegetables, dairy).

The U.S. will lower tariffs on Chinese imports imposed under the “fentanyl” tariff scheme by removing 10 percentage-points of the cumulative rate, effective November 10, 2025, and will suspend the previously heightened reciprocal tariffs on Chinese imports until November 10, 2026.

The U.S. will suspend implementation of the interim-final rule titled “Expansion of End-User Controls to Cover Affiliates of Certain Listed Entities” (“50 percent rule” or “Affiliates Rule”) for one year, beginning November 10, 2025. The “Affiliates Rule” under the Bureau of Industry and Security (BIS) , as covered in BIS Expends Entity List with Entity 50 Percent Rule , would have expanded export control liability to entities that are 50%-or-more owned, directly or indirectly, by listed parties — is suspended for one year starting November 10, 2025.

As is true in any trade deal between these countries, the devil will be in the implementation. If you have any questions surrounding the implications of the deal with China, please contact any attorney at Barnes Richardson and Colburn.