US-China Trade Talks May Soften Tech Export Restrictions, Rare-Earth Constraints Delayed

Chinese analysts anticipate a potential relaxation of US export controls implemented on September 29, which had significantly restricted advanced computer chip sales to subsidiaries of sanctioned Chinese firms. The speculation follows a preliminary trade agreement announced by senior officials from both nations, though final approval from Presidents Xi Jinping and TRUMP remains pending.

US Treasury Secretary Scott Bessent indicated Beijing might postpone its newest rare-earth mineral export constraints for approximately one year. While China's official statements omit specific concessions, Hutong Research suggests Beijing negotiated a trade-off during Kuala Lumpur discussions, possibly seeking suspension of certain US restrictions.

Market observers note the absence of immediate changes to American export rules, as emphasized by Bessent in Malaysia. The evolving terms—covering tariffs, shipping costs, fentanyl, and technology transfers—could indirectly influence cryptocurrency markets by altering risk sentiment in US-China relations.