China confirms trade framework with US

by Josh Xiao

China said it has further confirmed details of a trade framework with Washington, echoing US Commerce Secretary Howard Lutnick’s earlier comments about a US-China agreement that stabilized ties.

Officials from both countries have maintained close contact after holding trade talks in London earlier this month, a spokesperson for the Chinese Commerce Ministry said in a statement Friday. 

“In recent days, after approval, both sides have further confirmed details on the framework,” the person said. “The Chinese side will review and approve eligible applications for export of controlled items in accordance with the law. The US side will correspondingly cancel a series of restrictive measures taken against China.”

The Chinese comments come hours after Lutnick said the world’s two largest economies finalized a trade understanding reached in Geneva. Speaking to Bloomberg TV on Thursday, he added that the White House has imminent plans to reach agreements with a set of 10 major trading partners.

The China deal, which Lutnick said had been signed two days ago, codifies the terms laid out in trade talks between Beijing and Washington, including a commitment from China to deliver rare earths used in everything from wind turbines to jet planes.

Few details were released after the talks in London, which were led by US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, even as both sides hailed progress. 

The lack of a detailed readout following two days of discussions left much in doubt, including over whether Beijing agreed to resume exports of rare earth magnets.

While US President Donald Trump cast the outcome as “GREAT” in a social media post, his team acknowledged it largely formalized terms agreed to during earlier talks in Geneva, which led to a reduction of massive tariffs but spawned further disagreements over export controls. 

Referencing a June 5 call between Trump and Chinese President Xi Jinping, the ministry said in the Friday statement the two countries should work together to promote the stable development of economic and trade ties.

China earlier this month said it would tighten controls over two chemicals that can be used to make fentanyl, in an apparent olive branch to the US that may help maintain their fragile trade truce. 

The Trump administration put 20% tariffs on Chinese exports this year over Beijing’s alleged role in America’s opioid crisis. Those levies have remained in place.

In the Thursday interview, Lutnick said US “countermeasures” imposed ahead of the London talks would be lifted — but only once rare earth materials start flowing from China. Those US measures include export curbs on materials, such as ethane that’s used to make plastic, chip software and jet engines.

The agreement comes as the US moves to ease restrictions on exports of ethane, with the Commerce Department earlier this week telling energy companies they could load that petroleum gas on to tankers and ship it to China — but not unload it there without authorization.

Copyright Bloomberg News