US-China-agreement affects Bavarian businesses

On 30 October 2025 the USA and China reached an agreement which deescalated the ongoing trade conflict between the two states. The Bavarian economy is closely tied to both countries. They are Bavaria’s second and third most significant trading partners. Only trade with other EU member states has a higher volume. Bavarian companies have been adversely affected by the ongoing trade conflict.

Rare earth minerals and semiconductors for Bavarian businesses

The agreement means that the export of semiconductors will resume. This brings some relief for the manufacturing sector as does the realization that the temporary suspension of Chinese export controls on rare earths will also cover some exports to EU companies. They can continue to source some rare earths and technology associated with them from China without having to undergo an additional approval process. However, there are some benefits of the agreement on rare earths that only US consumers and their suppliers benefit from. Here Bavarian companies only benefit if they are suppliers to US-businesses or consumers.

Shipping fees for Bavarian exports

The agreement may affect shipping costs as both – the US and China – have committed to lowering fees for US-American and Chinese vessels. The US will also lower shipping fees on vehicle transports.