Washington Presses for Busan Deal Implementation as China Pledges 25 Million Tonnes of Soybeans

Key Facts

U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer urged Chinese Vice Premier He Lifeng in a call on November 6, 2026, to immediately implement the commitments of the Busan trade deal, foremost among them purchases of agricultural products and deliveries of rare earths and critical minerals. The pressure came ahead of an expected meeting between President Donald Trump and his Chinese counterpart, Xi Jinping, as Washington seeks to lock in implementation of understandings affecting farmers, manufacturers and mineral supply chains. The Treasury Department said the United States would assess China's implementation of the arrangement "closely." Greer added that the administration would monitor previous commitments and seek benefits for U.S. farmers, ranchers, manufacturers and workers. The call puts implementation at the forefront of preparations for the expected presidential meetings.

China, for its part, expressed "serious concern" during the call over recent U.S. trade restrictions, according to the official Xinhua news agency. The agency said He Lifeng agreed with U.S. officials to continue consultations to support stable and positive development of trade relations. The two positions reflect an expanding agenda of disputes that includes U.S. restrictions alongside China's commitments on minerals and agricultural purchases. Bessent said on July 30 that U.S. officials had told He that Washington expected Beijing to honor its commitments on rare earths and agricultural products. Reuters reported at the time that the United States described China's implementation of delivery commitments as partial, signaling continued tension over turning pledges into actual shipments.

Much of the U.S. pressure is tied to specific agricultural commitments under the Busan deal, which expires on January 10, 2027. The deal calls for China to buy 25 million metric tons of U.S. soybeans annually over the following three years, alongside an increase of $17 billion in purchases of other U.S. agricultural products. It also capped U.S. tariffs on Chinese goods at about 20%. The White House said in May that China had agreed to buy at least $17 billion a year in U.S. agricultural products in 2026, 2027 and 2028, in addition to the soybean commitments announced in October 2025. These provisions give agricultural trade a direct weight in Washington's assessment of the deal, alongside the issue of critical mineral supplies.

Rare earths remain a point of friction that extends beyond the wording of commitments to companies' ability to obtain supplies and licenses. In September, Reuters reported that some Chinese suppliers had refused to ship products to the United States for fear of repercussions from Beijing, and that U.S. companies had waited more than six months for licenses for some minerals. Shipment delays heighten the issue's sensitivity for supply chains that rely on Chinese minerals. Also in September, the U.S.-China Business Council recommended that better tariff treatment for trade in non-sensitive goods worth $30 billion on each side be made available in the future. Greer said improved market access could benefit about 30% of U.S. exports to China, from agricultural products to medical devices.

Trade tensions coincided with slower growth in China's services sector, as the RatingDog general services index fell to 50.8 points in October from 51.6 points in September, while remaining above the 50-point level that separates growth from contraction. October's reading was the weakest since July. The survey showed companies cut average selling prices for a second consecutive month as competition intensified, while input prices rose at their fastest pace in five months because of costs for materials, fuel and wages. Optimism also fell to its lowest level since July. By contrast, China's trade surplus reached $938.1 billion in the first nine months of 2026, with forecasts that it will exceed the record $1.2 trillion recorded in 2025.

Trump and Xi are scheduled to meet on the sidelines of the Asia-Pacific Economic Cooperation summit in Shenzhen on November 18 and 19, followed by the Group of 20 summit in Miami on December 14 and 15. The Shenzhen meeting comes after Bessent and Greer's call with He, while implementation of the minerals and agricultural purchase commitments remains a stated focus of U.S. messaging. In the nearer term, China's National Bureau of Statistics is scheduled to release its monthly consumer price index report on November 9, 2026, at 9:30 a.m. Beijing time. The official inflation data will add a new economic indicator ahead of the presidents' first meeting. The Busan deal, meanwhile, expires on January 10, 2027, under its stated terms.