The United States and China have finalized a framework agreement to expedite rare earth mineral exports and ease certain technology restrictions, the latest sign of a fragile détente between the world's two largest economies. The deal, confirmed Friday by China's Ministry of Commerce, follows months of stalled implementation after a preliminary consensus was reached in Geneva this spring.
The Chinese ministry said it would begin reviewing and approving export applications for controlled items in accordance with existing regulations. In return, the U.S. will cancel a range of restrictive measures previously imposed on China, though neither side provided detailed timelines or specifics.
U.S. Treasury Secretary Scott Bessent, who led the American delegation during negotiations, said Friday that the deal clears the way for renewed shipments of rare earth magnets and minerals that are critical to industries ranging from defense to electric vehicles. "I am confident now that we-as agreed-the magnets will flow," Bessent told Fox Business Network.
The agreement emerged from a series of high-level meetings, including a phone call between President Donald Trump and Chinese President Xi Jinping, and a follow-up session in London involving Bessent and Chinese Vice Premier He Lifeng. Trump said Thursday, "We just signed with China yesterday," referring to the framework deal.
A White House official clarified that the U.S. and China had reached "an additional understanding of a framework to implement the Geneva agreement," which originally called for a 90-day suspension of tariffs and a rollback of restrictions.
The new framework is aimed at restoring supply chain stability after China's April suspension of critical mineral exports, imposed in retaliation for new U.S. tariffs. Those restrictions disrupted key industries including aerospace, semiconductors, and automotive manufacturing. An industry source familiar with China's export controls said authorities had been "vetting buyers to ensure that materials are not diverted for U.S. military uses," slowing the licensing process.
China's commerce ministry did not explicitly mention rare earths in its statement, though earlier this month, sources told Reuters that China had granted temporary export licenses to rare-earth suppliers working with the top three U.S. automakers.
While the agreement marks a potential breakthrough, analysts cautioned that challenges remain. Alfredo Montufar-Helu, senior advisor at The Conference Board's China Center, said the announcement was encouraging, but noted that because both sides view rare earths as a crucial bargaining chip in future negotiations, trade in these goods is likely to remain constrained.
The initial Geneva deal had faltered amid frustrations in Washington over delays in Chinese export approvals. In response, the U.S. imposed new restrictions on semiconductor design software and aircraft components. The subsequent talks in London were seen as a critical step to prevent a broader escalation in the trade war.
