China has officially confirmed that it reached a trade framework with the United States that could lower tensions between the two countries. The deal focuses on lifting export controls and improving access to critical materials, but questions remain over how much it will change the larger trade relationship.

China’s Ministry of Commerce released a statement Friday detailing the framework. A spokesperson said China would review and approve licenses for exports that were previously restricted under Chinese law. This includes rare earth minerals, which are essential for many high-tech products.

On the U.S. side, President Donald Trump told a White House audience on Thursday, “We just signed with China yesterday.” Later, a White House official clarified that the agreement was an “additional understanding” to implement what negotiators had worked out earlier in Geneva.

The trade discussions were led by U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, who met in London on June 9 and 10 after initial talks in Geneva in May.

Key Details of the Agreement

While not every part of the framework has been made public, the following points were confirmed by officials and reporting:

• China will review and approve export licenses for controlled items, including certain rare earths.
• The U.S. will cancel a series of export restrictions it had imposed on China, such as limits on ethane, jet engines, and semiconductor software.
• Both countries will temporarily suspend a majority of tariffs on each other’s goods for 90 days as part of earlier commitments.
• The U.S. and China agreed to maintain “close communication” to monitor progress.

A spokesperson for China’s Ministry of Commerce did not specify exactly which rare earth restrictions would be relaxed, other than those related to magnets.

Why Rare Earths Matter

China controls much of the world’s supply of rare earth minerals. These elements are used to build semiconductors, advanced weapons systems, smartphones, and electric vehicles. In recent months, China slowed its exports to the U.S. almost to a halt, sparking concern in Washington.

In response, the Trump administration imposed new limits on sensitive U.S. technology sales to Chinese companies. These were the same measures Beijing now expects the U.S. to remove as part of this trade framework.

Commerce Secretary Howard Lutnick told Bloomberg News that the United States would begin removing its export controls once China followed through with deliveries of rare earth minerals.

While the announcement has been called encouraging by some analysts, many experts warned not to expect too much. Alfredo Montufar-Helu, a senior advisor at The Conference Board, said rare earths will remain “a crucial bargaining chip” for both countries. He pointed out that the statement lacked detail about which materials are covered and how quickly shipments will resume.

Possible Points of Contention

Even if the framework eases short-term pressures, several deeper issues are likely to keep negotiations tense:

• The United States wants China to commit to buying more American products, especially agricultural goods and manufactured items.
• Washington also insists that more U.S. companies be given full access to Chinese markets.
• Both sides have security concerns about technology transfers, including the production of advanced chips.
• China is worried about U.S. visa restrictions on its students and researchers.

While China has said it will not give in easily to American demands, Beijing also faces economic challenges at home. A slowing economy, property market troubles, and weak consumer spending all create pressure to stabilize trade ties.

ACZ Editor: This will not go smoothly, but it is a beginning. At the very least, trade conditions with China will be better. At best, it may balance.