The recent summit between Chinese President Xi Jinping and US President Donald Trump has led to significant trade concessions, sparking widespread celebration among Chinese media and commentators. Washington agreed to halve the 20% fentanyl-related tariff and extend the suspension of the 24% reciprocal tariffs by a full year, rather than the initially anticipated 90 days. This decision came after the two leaders met in South Korea on Thursday morning, marking a pivotal moment in the ongoing trade negotiations between the two economic giants. Chinese analysts hailed the compromises as substantial, particularly given the backdrop of the tariff war that began in 2018. Despite a de-escalation agreement in May, Chinese exporters still faced an average tariff rate of 55%, including a 20% fentanyl-related tariff, a 10% reciprocal tariff, and a 25% tariff from the 2018 trade war. The new concessions are expected to save Chinese exporters $43.5 billion annually, providing a much-needed boost to China’s export economy, which saw a 16.9% year-on-year decline in the first nine months of this year. The trade truce also highlighted China’s strategic use of its rare-earth dominance, with the US recognizing the critical role China plays in global rare-earth refining. This leverage has allowed Beijing to secure time for supply chain reforms and industrial upgrades. Meanwhile, the one-year tariff suspension has reignited optimism across China’s manufacturing hubs, with business leaders viewing it as a lifeline for stabilizing production and securing global orders. The US, facing its own industrial challenges, has softened its stance, acknowledging the need for cooperation. However, analysts caution that the US policy of suppressing China’s technological development remains unchanged. The truce also includes agreements to postpone new sanctions rules and reciprocal port fees, further easing trade tensions. As both nations navigate this fragile truce, the focus remains on leveraging the coming year to strengthen economic resilience and deepen bilateral cooperation.