China Confirms Key Details of Trade Agreement With the U.S.

China’s Ministry of Commerce officially confirmed details of a new trade framework with the United States on Friday, focusing on rare earth exports and easing of certain tech-related restrictions.

According to the ministry’s statement, China will review and approve export applications for items under export control, while the U.S. will lift a series of restrictive measures previously imposed on Beijing. Specifics about which restrictions will be removed were not disclosed.

A New Chapter in U.S.-China Trade Relations

This confirmation follows remarks by former U.S. President Donald Trump, who said at a White House event on Thursday, “We just signed with China yesterday.” A White House official later clarified that both sides had agreed on “an additional understanding on implementing the Geneva agreement.”

Earlier this month in London, high-level negotiations led by U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng resulted in a joint consensus on executing the Geneva trade framework, which had been under strain in recent months.

Spotlight on Rare Earths and Tech Export Controls

Alfredo Montufar-Helu, Senior Advisor at The Conference Board’s China Center, commented that while the development is encouraging, expectations should remain measured.

“There is still a lack of clarity regarding which rare earth export restrictions will be relaxed, aside from permanent magnets,” he noted.

He emphasized that rare earth elements are vital to national security on both sides, making full liberalization unlikely.

Geneva Deal and Its Complications

The Geneva deal, originally negotiated in mid-May, included:

A 90-day suspension of most tariffs on goods traded between the two nations,

Partial rollback of restrictive measures by both parties.

However, the agreement encountered roadblocks:

China’s slow action in easing rare earth export controls,

The U.S. further tightening tech regulations and visa policies for Chinese students.

These tensions had threatened to derail the fragile recovery in bilateral trade relations, but the latest framework agreement aims to stabilize the situation.

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