China has confirmed the finalisation of a trade framework with the United States, aligning with earlier statements by US Commerce Secretary Howard Lutnick that the world’s two largest economies have reached an understanding to stabilise bilateral ties.
In a statement released on Friday, a spokesperson for China’s Commerce Ministry disclosed that both countries have “further confirmed details on the framework” after talks in London earlier this month.
The ministry stated that Beijing will process and approve applications for the export of controlled items in line with existing laws, while Washington is expected to lift a series of restrictive measures targeting Chinese goods and materials.
The agreement follows extensive negotiations held in London, which involved US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng. Although details were limited at the time, Lutnick confirmed in an interview that the final accord was signed two days ago, formalising terms initially agreed during earlier discussions in Geneva.
Under the new understanding, China is expected to resume the export of rare earth elements critical to sectors including renewable energy, aerospace and advanced manufacturing. These materials are used in products ranging from wind turbines to jet engines, giving the accord significant implications for global supply chains.
The White House described the outcome as a “great” development. However, US officials acknowledged that the deal primarily cements provisions negotiated in Geneva while addressing lingering disputes over export controls and high tariffs imposed in recent years.
China’s commitment includes stricter oversight of chemicals used in fentanyl production, which Beijing indicated earlier this month. The move is widely viewed as a goodwill gesture to help sustain the fragile trade truce. The US had previously imposed 20% tariffs on Chinese exports partly in response to concerns about the opioid crisis.
Lutnick confirmed that US countermeasures introduced before the London meetings will be reversed once China resumes rare earth shipments. These measures affected exports of materials such as ethane for plastic production, semiconductor software and critical jet engine components.
Additionally, the Commerce Department has informed US energy firms that they may load ethane for shipment to China under the revised terms but cannot offload the cargo without prior authorisation.
The Chinese Commerce Ministry cited a June 5 conversation between President Donald Trump and President Xi Jinping, emphasising that both sides should continue working together to ensure stable economic and trade relations. Lutnick also hinted that Washington is close to securing further agreements with ten other major trading partners as part of broader efforts to ease trade frictions globally.
Market observers will continue to monitor how swiftly both countries implement the accord and whether it leads to a sustainable reduction in tariffs and export controls that have weighed on global trade sentiment for years.
