US and China have confirmed the conclusion of a bilateral trade framework agreement that secures the resumption of rare-earth mineral exports to the US and signals a broader easing of mutual restrictions.
The accord, finalised earlier this week, builds on previous discussions held in Geneva and London and is viewed by both sides as a step towards stabilising trade relations after years of tariff escalations and regulatory disputes.
US Commerce Secretary Howard Lutnick stated in an interview with Bloomberg that the two countries had reached a final understanding. “They’re going to deliver rare earths to us,” he said. “Once China does that, we’ll take down our countermeasures.” Lutnick also indicated that the White House intends to conclude similar arrangements with ten additional trading partners in the near future.
The Chinese Ministry of Commerce confirmed the development in a statement released on Friday, reiterating that Beijing would “review and approve the export applications of controlled items that meet the conditions in accordance with the law.” In return, the United States is expected to lift a number of unspecified restrictive measures targeting Chinese exports and entities.
The framework agreement centres on critical raw materials—specifically rare-earth elements (REEs)—which are vital to US industries involved in advanced electronics, battery manufacturing, aerospace, and renewable energy. China remains the dominant global supplier of REEs, accounting for the majority of global refining and processing capacity.
The agreement was initially outlined during talks in Geneva last month and further refined in London earlier in June. Although the precise terms remain undisclosed, both parties have signalled an intention to normalise trade in sensitive sectors while avoiding further retaliatory measures.
Beijing’s statement, citing a recent phone call between President Xi Jinping and US President Donald Trump, called for “mutual respect” and “constructive engagement” in the management of economic ties. The conversation, held on 5 June, reportedly laid the groundwork for the final round of negotiations.
The new agreement follows a period of mutual recriminations, during which both governments accused the other of failing to honour previous trade understandings. Washington has sought to restore access to Chinese REEs amid concerns over supply chain resilience, while Beijing has objected to what it characterises as escalating US restrictions on Chinese technology firms, academic visas, and exports.
No official comment has been issued by the White House, though Lutnick’s remarks indicate a shift towards targeted de-escalation. “This is not a comprehensive trade deal,” he said, “but a strategic framework to stabilise access to critical materials.”
The Chinese Ministry of Commerce echoed this sentiment, stating that it would continue to evaluate export licence applications on a case-by-case basis in accordance with domestic laws. The statement did not identify specific export control categories or provide volume commitments, though the move is expected to facilitate more predictable access for US importers.
Industry analysts have welcomed the agreement as a pragmatic measure to address short-term supply risks while allowing further diplomatic space to manage longer-term structural issues. The US has been investing in alternative sources of rare earths, including projects in Australia, Canada, and Africa, but these remain in early stages of development and are not yet positioned to meet industrial-scale demand.
The agreement may also serve as a template for future trade arrangements. Lutnick confirmed that the administration is in advanced discussions with other major trading partners to implement similar frameworks aimed at reducing reliance on single-source suppliers for strategic materials.
Observers in Brussels and Tokyo are closely watching the evolution of the US–China trade relationship, particularly as both the EU and Japan have launched their own initiatives to secure stable access to critical raw materials. The current agreement is likely to inform those strategies, especially in areas where supply chain vulnerabilities have been exposed by geopolitical tensions.
While the full implications of the framework remain to be seen, the confirmation of the deal marks a rare moment of consensus between Washington and Beijing on economic cooperation. Both sides have presented the outcome as a necessary step to ensure continuity in high-value manufacturing sectors and to avert further disruption to global supply chains.
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