US President Donald Trump on Thursday said he and his Chinese counterpart Xi Jinping have agreed for a one-year deal on the supply of crucial rare earths.
Trump said he has also agreed to reduce fentanyl-related tariffs on China to 10 percent, as the two leaders met in person after six years, amid ongoing trade tensions.
"All the rare earths has been settled, and that's for the world," Trump told reporters aboard Air Force One, adding that the deal was for a year and would be re-negotiated annually.
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Speaking of his meeting with President Xi, Trump said: "We are going to issue a statement with some of the details but overall I guess on the scale of 0 - 10 with 10 being the best, the meeting was a 12."
He added: "I'll be going to China in April and he'll be coming here sometime after that, whether it's in Florida, Palm Beach or Washington, DC."
The US President also said "a lot of things we brought to finalisation" and praised Xi as a "tremendous leader of a very powerful country".
The US and China have been embroiled in a war of words since a September telephone call between Trump and Xi, with each accusing the other of stoking tensions weeks ahead of an expected meeting between the two men.
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A strategic field dominated by China that is essential for manufacturing in defence, automobiles and consumer electronics, the topic of rare earths was expected to be a key topic during the discussions.
Beijing imposed sweeping export controls on the materials and related technology this month. Trump swiftly announced retaliatory tariffs of 100 per cent on all Chinese goods, originally due to come into effect on Saturday.
The move threatened to kick off another tit-for-tat trade war spiral.
Trump later softened his rhetoric, saying such a tariff level is "not sustainable" and expressed confidence that a deal on rare earths can be struck.
A 20 per cent tariff on Chinese goods over Beijing's handling of the fentanyl issue has been in place since March. The US President earlier claimed China has not done enough to halt the trafficking of fentanyl and other highly potent opioids into the United States.
Beijing, however, said it has cooperated with Washington and that tariffs will not solve the drug problem.
