China, United States Confirm Deal and Ease Trade Restrictions

China and the United States have reached a new trade arrangement, noting that Washington will withdraw several "restrictive measures" while Beijing has committed to "review and approve" products currently regulated under export controls.

A central topic for the United States in these discussions was ensuring a steady flow of rare earth materials, essential for producing EV batteries, wind energy components, and military technology. China, which leads global rare earth production, began enforcing export license requirements in April, a move widely interpreted as retaliation for tariffs imposed by US President Donald Trump.

After months of strained relations, both governments reached an agreement in May during meetings in Geneva to temporarily reduce mutual tariffs. China also pledged to ease some non-tariff responses. However, United States officials later criticized Beijing for failing to uphold its commitments by delaying export approvals.

Talks resumed in London this month, where both sides reached a renewed understanding. According to a White House official quoted by AFP, the Trump administration and China “agreed to an additional understanding on the Geneva deal enforcement framework.”

President Trump had previously hinted at progress during a public appearance, stating: “We just signed something with China related to trade,” though he provided no specifics at the time. China later confirmed the agreement, with a spokesperson from its Ministry of Commerce saying: “It is expected that the United States and China will meet halfway.” The spokesperson added that the two sides had “confirmed the framework details,” with China agreeing to process export requests that comply with legal standards, while the United States will eliminate several trade restrictions.

The White House says that the July deadline for raising tariffs on dozens of countries could be postponed. “Maybe it gets extended, but that is a decision for the president,” says spokesperson Karoline Leavitt. She adds that Trump “can simply offer a deal to these countries if they do not propose one before the deadline.”

US Treasury Secretary Scott Bessent welcomes the advances: “I am confident now that we have a deal, magnets will flow,” he tells Fox Business.