China has confirmed the framework of a trade agreement with the United States, stating that Washington will lift certain “restrictive measures” while Beijing will review and approve exports subject to control regulations.
A central issue for the U.S. in negotiations was securing access to rare earth elements, which are vital for manufacturing electric vehicles, data storage, and defense systems. China, the dominant global supplier, had introduced export licence requirements in April—widely interpreted as a response to heavy tariffs imposed by then-President Donald Trump.
Following initial talks in Geneva this May, both nations agreed to temporarily ease mutual tariffs. China also pledged to reduce some non-tariff retaliatory measures. However, U.S. officials later accused Beijing of slow-rolling export licences in violation of that agreement.
Progress resumed after recent discussions in London, where the two sides reaffirmed the Geneva terms. A White House official told AFP that both countries had now reached “an additional understanding” to implement the framework.
President Trump had earlier mentioned a deal had been signed but did not provide specifics. Beijing later confirmed the agreement, with its commerce ministry stating that both parties had clarified the framework details. Under the arrangement, China will review export control applications according to its laws, while the U.S. will lift certain trade restrictions on China.
Meanwhile, U.S. Treasury Secretary Scott Bessent said Washington aims to finalize several trade deals by early September. The U.S. is currently negotiating with 18 key partners, hoping to secure at least 10 to 12 major agreements. He noted there are another 20 trade relationships also in consideration.
Commerce Secretary Howard Lutnick added that top-tier deals will be prioritized before moving on to other countries. This follows the imposition of 10% tariffs on many U.S. trade partners in April, prompting nations to accelerate negotiations with Washington.
Financial markets responded positively to news of potential trade resolutions. The S&P 500 reached record highs, while European markets rose and Asian indexes were mixed.
White House Press Secretary Karoline Leavitt said the July 9 deadline for higher U.S. duties could be extended but emphasized that it’s ultimately up to the president. If talks fail, she said, the president could impose reciprocal tariffs he deems favorable for the U.S.
