In a pivotal development, China and the U.S. have reached a trade framework aimed at alleviating export restrictions and revitalizing bilateral relations amidst a protracted trade conflict.
China Solidifies Trade Pact with U.S. to Ease Export Restrictions
China Solidifies Trade Pact with U.S. to Ease Export Restrictions
Groundbreaking agreement boosts rare earth exports to U.S. while U.S. relaxes limitations on goods sent to China.
On June 27, 2025, China confirmed a significant trade agreement with the Trump administration that promises to amplify exports of critical minerals, particularly rare earth elements, to the United States. Concurrently, the U.S. is poised to withdraw certain export controls previously imposed on Chinese goods, according to a statement from the Chinese Ministry of Commerce.
The deal aligns with remarks made by U.S. Commerce Secretary Howard Lutnick, who stated that the U.S. would lift export restrictions once China ramps up its rare earth shipments. “China will review and approve applications for the export of controlled items,” noted the Ministry, signaling a commitment to facilitate trade.
While details remain murky regarding President Trump's previous declarations about signing a deal, the Ministry's confirmation highlights ongoing efforts by trade negotiators from both nations, who recently convened in London after discussions in Geneva aimed at cooling rising tensions from a heated trade war characterized by both nations imposing steep tariffs on each other's products.
Following a period of significantly reduced Chinese rare earth exports to the U.S., which are essential for a myriad of modern technologies such as semiconductors and aircraft, the Trump administration responded with restrictions on U.S. exports of products like ethane and jet engines. It is presumed that these measures could be lifted in anticipation of increased rare earth shipments from China.
The recent agreement is complemented by China's announcement to tighten controls on two chemicals used in fentanyl production—a move interpreted as an attempt to improve relations with the U.S., particularly in the context of concerns over the rampant opioid crisis affecting Americans.
Despite China's insistence on maintaining a strong stance in its trade disputes, analysts suggest it is in Beijing's best interest to pursue a broader settlement. With the Chinese economy facing challenges such as a property market crisis and diminished consumer confidence, a comprehensive trade agreement could serve as a crucial stabilizing factor moving forward.
David Pierson, an experienced journalist covering China’s international relations and economic policies, contributed to this report.
