US Suspends Sanctions on Chinese Intelligence Agency to Preserve Trade Agreement

The Trump administration has reportedly suspended plans to impose sanctions on China's ministry of state security in response to extensive cyber espionage activities, according to the Financial Times on Wednesday.

This decision appears aimed at preserving the trade truce recently established between the two economic powers.

The cyber campaign, known as Salt Typhoon, involved Chinese-affiliated hackers targeting numerous US and global telecommunications companies, as well as a US state's Army National Guard network in a sophisticated and prolonged espionage operation.

In addition to halting the planned sanctions, President Donald Trump's administration has reportedly decided against implementing significant new export restrictions targeting China, based on information from several US officials and other sources familiar with the matter.

When approached for comment, the White House did not provide an immediate response, and Reuters was unable to independently verify these claims.

The decision follows a period of trade tensions between the nations. On October 30, Chinese President Xi Jinping and President Trump reached a framework agreement during meetings in South Korea. Under this arrangement, the United States agreed to refrain from imposing 100 percent tariffs on Chinese imports, while China committed to suspending an export licensing system for strategic rare earth minerals and magnets.