China temporarily lifts trade restrictions on US companies: what’s behind the unexpected warming
5 November 20:46
The Chinese government has announced a temporary one-year lifting of restrictions on the supply of dual-use goods to 31 American companies, mostly in the defense and aerospace sectors.
The decision will come into force on November 10, 2025, the Ministry of Commerce of the People’s Republic of China reported , "Komersant Ukrainian".
These companies were included in the Chinese “blacklist” back in March, when Beijing accused them of supplying technologies that “undermine China’s national security.”
The restrictions concerned, in particular, the export of rare earth metals, which are critical for the production of microchips, aircraft engines, and weapons.
Why Beijing made concessions
The decision was based on diplomatic warming.
As explained by the Chinese Ministry of Commerce, the lifting of export controls is related to the agreements reached during the Sino-US talks in Kuala Lumpur. In fact, this is part of a broader attempt to stabilize relations between the two economic giants after years of trade confrontation.
The symbolic backdrop for this step was also US President Donald Trump’s decision to cut duties on Chinese goods by 10%, reducing the average level of US tariffs to 47%. Beijing, in response, suspended an additional 24% of tariffs on imports from the United States, leaving the basic 10% unchanged.
What it means for business
From now on, Chinese companies will be able to apply for exports of dual-use products to the United States – but only if they are approved by the Ministry of Commerce. Each transaction is subject to an individual permit, which effectively allows Beijing to control the scope of the resumption of cooperation.
For U.S. corporations in the aviation, defense, and high-tech sectors, this decision opens up access to critical resources that have been lacking in recent months due to the sanctions regime.
A new stage of the “trade truce”
Analysts call this decision a “test of trust” between the US and China. Beijing demonstrates its willingness to engage in dialogue, but at the same time retains leverage, reserving the right to reimpose sanctions at any time.
For both sides, this is a signal to the markets that the trade war that has been going on since 2018 may enter a phase of controlled coexistence. However, experts warn that any political aggravation over Taiwan or technological restrictions could bring the parties back to confrontation.
