U.S. and China Confirm Trade Framework Details, Easing Tech and Rare Earth Restrictions
U.S. and China Confirm Trade Framework Details, Easing Tech and Rare Earth Restrictions
Beijing has announced that the United States and China have finalized details of a comprehensive trade framework aimed at facilitating rare earth exports and alleviating technology restrictions. China’s Ministry of Commerce released a statement Friday afternoon, confirming the agreement.
According to a ministry spokesperson, China is set to review and approve export applications for items subject to control rules, while the U.S. will simultaneously rescind a range of existing restrictive measures previously imposed on Beijing. Specific details regarding the measures were not immediately provided.
This development follows U.S. President Donald Trump’s statement on Thursday at a White House event, where he indicated a recent signing with China. A White House official later clarified that the agreement constitutes an ‘additional understanding of a framework to implement the Geneva agreement.’
Earlier this month, high-level trade delegations, led by U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, successfully concluded two days of talks in London, reaching an agreement on the implementation of the Geneva consensus. This London agreement is seen as a crucial step in stabilizing what had become a strained relationship, marked by mutual accusations of Geneva trade agreement violations.
Alfredo Montufar-Helu, senior advisor for the China Center at The Conference Board, cautioned that while the progress is encouraging, ‘it’s important to temper expectations.’ He highlighted a lack of clarity regarding which rare earth export curbs, beyond magnets, would be relaxed. Montufar-Helu emphasized that rare earths are vital for national security on both sides, suggesting trade in these goods will likely remain constrained.
The initial Geneva meeting in mid-May had resulted in a preliminary agreement between Washington and Beijing to suspend most tariffs on each other’s goods for 90 days and to roll back certain restraints. However, that Geneva deal later faltered due to China’s slow progress on relaxing rare earth export curbs and the U.S. tightening restrictions on tech and Chinese student visas.
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