China's Strategic Moves: Expanding Economic Leverage Amid Trade Truce

China has been leveraging the trade truce with the U.S. to broaden its economic control measures. Since the October agreement in Busan to de-escalate tensions, China has implemented new regulations targeting foreign jurisdiction practices, tightened export controls, and promoted domestic technological self-sufficiency, reinforcing its strategic economic position globally.

In the wake of a temporary trade truce with the United States, China is strategically broadening its economic scope. The October summit, attended by President Xi Jinping and U.S. President Donald Trump in Busan, saw an agreement meant to ease tensions. However, as the expiration looms in November 2026, China is reinforcing its stance.

Notably, Beijing has unveiled several countermeasures, including policies aimed at limiting exports of cutting-edge solar technology and tightening laws on foreign jurisdictions. Specifically, China's April decrees target secondary sanctions and the ripple effects of certain export controls, pushing back against what it sees as discriminatory practices.

Amid growing economic assertiveness, China has also restricted crucial rare earth exports to Japan and mandated domestic equipment in semiconductor manufacturing. The new rules enhance China's leverage, fortifying its industrial chains against foreign pressures and solidifying its global trade position.