US-China Trade Truce Hits Snags Over Soybeans, Boeing, and Rare Earths

Trade commitments between the US and China are advancing at different speeds ahead of Thursday's summit in Washington, according to Traders Union. The mixed record suggests that the truce is keeping commerce moving and limiting fresh escalation, while both sides still preserve strategic leverage in sensitive sectors.

The Chinese have fulfilled almost half of their 25 million ton annual soybean commitment, including a 1 million ton US purchase in September. However, Boeing orders remain unclear, with only about 140 aircraft confirmed and 10 more in negotiation, but details on customers and delivery schedules are absent.

Rare earth magnet shipments to the US from China fell to 512 metric tons in August, down 20% from July and 13% year-over-year. Analysts view rare earths as a key strategic test of the broader relationship between the two nations, with concessions in this area carrying greater strategic cost than soybean buying or aircraft orders.

Eric Xiao, head of sales for Asia at CMC Markets, says that the truce is moving fastest where the political and economic cost is lowest. Larry Hu, head of China economics at Macquarie Group, describes the relationship as a détente shaped by a balance of vulnerability.