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US Halts Plans to Sanction China's Spy Agency in a Bid to Maintain Trade Truce: Report

The US paused sanctions on China’s spy agency to preserve trade talks and President Trump's planned Beijing visit, amid internal disputes over export controls and China policy.

  • Dec 3 — The United States halted plans to impose sanctions on China's Ministry of State Security to avoid derailing a trade truce reached this year, which includes Washington not imposing 100% tariffs and China delaying export controls.
  • Officials said the administration shifted focus to stability, aiming to reduce dependence on Chinese rare earths, as President Donald Trump did not want to jeopardise his planned Beijing visit in April.
  • Evidence shows the Salt Typhoon campaign targeted telecoms and unencrypted communications, and in recent weeks, Stephen Miller, deputy White House chief of staff, was tasked to protect the détente after Scott Bessent, U.S. Treasury Secretary, raised concerns.
  • Officials weighed broader export-control choices, holding a high-level meeting on Nvidia H200 licensing while the report said no major new export controls will be enacted, U.S. officials cited by the Financial Times said.
  • Analysts questioned whether a softer approach will aid trade talks, Reuters could not immediately verify the Financial Times report, and the White House did not respond to requests for comment.
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US Halted Plans to Sanction Chinese Spy Agency to Maintain Trade Truce ...

·New York, United States
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US President Donald Trump is sacrificing national security for trade deals with China, as US government officials respond to the president's move to scrap a plan to impose sanctions on China's intelligence service.

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U.S. News broke the news in New York, United States on Wednesday, December 3, 2025.
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