U.S. and Chinese officials have reached a framework agreement in London to remove China’s export restrictions on rare earths and some recent U.S. export controls on semiconductor-related goods. This deal aims to reactivate a previous Geneva agreement and prevent a snap-back of high tariffs, though it does not resolve deeper, long-standing trade tensions between the two nations. The framework will now be presented to their respective presidents for approval.
U.S., China agree on framework to remove export curbs on rare earths, semiconductors
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U.S. and Chinese officials have reached a framework agreement in London to remove China’s export restrictions on rare earths and some recent U.S. export controls on semiconductor-related goods. This deal aims to reactivate a previous Geneva agreement and prevent a snap-back of high tariffs, though it does not resolve deeper, long-standing trade tensions between the two nations. The framework will now be presented to their respective presidents for approval.
Trending- 1 Last month: Agreement reached in Geneva to ease bilateral retaliatory tariffs.
- 2 April: China suspended exports of a wide range of critical minerals and magnets; Trump's 'Liberation Day' tariff announcement.
- 3 May: U.S. responded by halting shipments of semiconductor design software and aviation equipment; House passed Trump's 'big, beautiful bill'.
- 4 Monday, June 9, 2025: Customs data showed China’s overall exports to the U.S. plunged 34.5% in May.
- 5 Tuesday, June 10, 2025: U.S. and Chinese officials agreed on a framework deal in London; World Bank slashed its global growth forecast; U.S. appeals court allowed Trump’s most sweeping tariffs to stay in effect.
- 6 Wednesday, June 11, 2025: European Central Bank President Christine Lagarde visited Beijing.
- 7 Until August 10: Deadline to negotiate a more comprehensive agreement to ease trade tensions.
- Potential easing of bilateral retaliatory tariffs
- Prevention of the Geneva agreement from unraveling
- Continued deep differences over trade policies remain unresolved
- World Bank slashed global growth forecast for 2025
- China's overall exports to the U.S. plunged in May
- U.S. business and household confidence hammered
- Dollar remains under pressure
What: U.S. and Chinese officials agreed on a framework to remove China’s export restrictions on rare earth minerals and magnets, and some U.S. export restrictions on semiconductor design software, aircraft, and other goods.
When: Tuesday, June 10, 2025, after two days of negotiations.
Where: London, United Kingdom (negotiations); Geneva (previous agreement); Washington D.C., United States; Melbourne, Australia; Shenzhen, China; Beijing, China.
Why: To get a trade truce back on track, which had faltered due to China's continued curbs on critical minerals exports and subsequent U.S. retaliatory export controls, and to prevent a snap-back of high retaliatory tariffs.
How: Through intense negotiations between U.S. Commerce Secretary Howard Lutnick and China’s Vice Commerce Minister Li Chenggang, resulting in a framework deal that will be presented to their respective presidents for approval.