China announces trade deal with US, eases export restrictions

China has announced new details about a trade agreement with the United States aimed at reducing some export restrictions, according to a statement from the Beijing Ministry of Commerce. Under the new agreement, China agrees to accelerate export licensing for rare earth minerals and other controlled materials, while the United States will remove some restrictions on Chinese exports. According to a brief statement from the ministry, Chinese officials will review and approve applications related to items under export control laws. These licenses are expected to include magnets and other critical components serving electronics, renewable energy, and defense industries. However, observers note that specific categories beyond magnets with reduced restrictions remain unclear. The United States and China agreed to cancel certain restrictive measures. The US administration committed to rescinding many measures imposed on Chinese export goods. The spokesperson for the Beijing Ministry of Commerce stated that the US will correspondingly cancel a series of restrictions previously applied to Beijing, without specifying the exact list or timeline for removing each measure. The Chinese Ministry of Commerce indicated that the country will review and approve export applications for controlled items meeting legal regulatory conditions. The ministry hopes that the US and China will meet halfway, continuously enhance consensus, reduce misunderstandings, strengthen cooperation, and jointly promote healthy, stable, and sustainable economic and trade development between the two countries. With only a few specific details released, many experts warn against premature celebration. Alfredo Montufar-Helu, senior advisor at The Conference Board's China Center, assessed the statement as a positive signal but called for caution, noting that both sides view rare earth minerals as an important leverage in upcoming negotiations. This announcement came after US President Donald Trump's statement on Thursday, mentioning signing an agreement with China the previous day. A White House assistant later explained that the two countries had reached an additional understanding about the framework for implementing the Geneva agreement previously discussed in May. Early this month in London, top trade representatives, US Treasury Secretary Scott Bessent and Chinese Vice Premier Xia Lifang, completed the initial deployment plan after two days of intense negotiations. Experts warn that businesses from both sides should proceed cautiously. Discussions aimed to stabilize tensions after mutual accusations of delays; Washington complained that China had not quickly loosened rare earth mineral export restrictions, while China opposed technology restrictions and the revocation of student visas by the United States. The preliminary agreement outlined suspending tariffs for 90 days between the two sides and removing some other punitive measures. Friday's update specifically aimed to clarify how and when strategic mineral and technology trade would become more liberalized. Montufar-Helu warned that the overall impact might be limited because both sides consider rare earth minerals an important leverage for future negotiations. He predicted that trade in these minerals would remain strictly controlled. Indeed, until Beijing publishes clear guidelines on loosened export controls and Washington details the measures planned for removal, businesses will likely maintain a cautious approach in their plans. Currently, businesses from both sides are closely monitoring official regulations and implementation start dates. If Beijing's commitments become specific policies, manufacturers from consumer electronics corporations to electric vehicle producers might feel more assured that critical components could move more freely between the world's two largest economies. However, without a detailed roadmap, uncertainties about the speed and scope of these changes could immediately reduce trade growth.