China has confirmed the finalisation of a trade framework agreement with the United States, aligning with remarks made by US Commerce Secretary Howard Lutnick, who earlier outlined a mutual accord aimed at stabilising bilateral relations.
According to a statement released on Friday by China’s Ministry of Commerce, both parties have maintained close communication following trade discussions held in London earlier this month. The Ministry noted that, upon receiving the necessary approvals, both sides had further clarified and agreed upon the framework’s details.
“The Chinese side will review and approve eligible applications for the export of controlled items in accordance with the law. The US side will correspondingly cancel a series of restrictive measures taken against China,” the Ministry spokesperson stated.
The announcement closely followed Lutnick’s comments in a Bloomberg Television interview on Thursday, where he disclosed that the US and China had finalised the terms of a trade agreement reached during talks in Geneva. He further indicated that the White House intends to pursue similar agreements with ten major trading partners in the near future.
Lutnick confirmed that the agreement with China had been signed two days prior. The framework formalises terms discussed in prior negotiations, including a commitment from Beijing to resume the supply of critical rare earth materials. These resources are essential in a wide range of high-technology sectors, including wind energy and aerospace manufacturing.
Despite the progress made in London, where discussions were led by US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, limited information was publicly disclosed. This has led to ongoing speculation regarding key components, such as the resumption of exports of rare earth magnets.
President Donald Trump characterised the outcome of the talks as “GREAT” in a social media post, although senior administration officials acknowledged that the agreement largely codifies understandings reached earlier in Geneva. These prior arrangements resulted in a partial easing of tariffs but left unresolved disputes around export control policies.
The Chinese Commerce Ministry referred to a call between President Trump and President Xi Jinping on 5 June, reiterating that both nations should work collaboratively to ensure the stable development of economic and trade relations.
Earlier this month, China announced it would intensify regulations on two chemical precursors used in fentanyl production. The move was widely seen as a gesture towards the United States, potentially aimed at preserving the fragile trade détente. The Trump administration had imposed 20% tariffs on Chinese goods in response to allegations of Beijing’s involvement in the US opioid crisis. These levies remain in effect.
In his Thursday interview, Lutnick stated that punitive measures imposed by the US prior to the London negotiations would be rescinded once rare earth exports from China resumed. These US restrictions include curbs on key materials such as ethane, advanced semiconductor software and components for jet engines.
The agreement coincides with the US government’s decision to ease certain restrictions on ethane exports. Earlier this week, the Department of Commerce notified energy producers that they could load ethane onto vessels destined for China, though unloading remains prohibited without explicit authorisation.
