US, China seal framework deal on trade, rare earths in focus
BEIJING: China confirmed Friday details on the framework of a trade deal with the United States, saying Washington would lift "restrictive measures" while Beijing would "review and approve" items under export controls.
A top priority for Washington in talks with Beijing had been ensuring the supply of the rare earths essential for products including electric vehicles, hard drives and national defence equipment.
China, which dominates global production of the elements, began requiring export licences in early April, a move widely viewed as a response to blistering tariffs imposed by President Donald Trump.
The two sides agreed after talks in Geneva in May to temporarily lower steep tit-for-tat tariffs on each other's products.
China also committed to easing some non-tariff countermeasures but US officials later accused Beijing of violating the pact and slow-walking export licence approvals for rare earths.
They eventually agreed on a framework to move forward with their Geneva consensus following talks in London this month.
A White House official told AFP on Thursday that the Trump administration and China had "agreed to an additional understanding for a framework to implement the Geneva agreement."
That clarification came after the US president told an event that Washington had "just signed" a deal relating to trade with China, without providing further details.
Beijing confirmed on Friday that an agreement had been reached.
"It is hoped that the United States and China will meet each other halfway," a spokesperson for the commerce ministry said in a statement.
It said both sides had "further confirmed the details of the framework."
Under the deal, China "will review and approve applications for the export control items that meet the requirements in accordance with the law."
"The US side will correspondingly cancel a series of restrictive measures against China," the commerce ministry said.
US Treasury Secretary Scott Bessent said Friday that Washington could wrap up its agenda for trade deals by early September, indicating more agreements could be concluded although likely extending past an upcoming deadline.
Speaking to Fox Business ahead of a July 9 deadline for steeper US duties to kick in on dozens of economies, Bessent reiterated that there are 18 key partners Washington is focused on pacts with.
"If we can ink 10 or 12 of the important 18, there are another important 20 relationships, then I think we could have trade wrapped up by Labour Day," Bessent said. That holiday falls on September 1.
About the July date, US Commerce Secretary Howard Lutnick told Bloomberg Television on Thursday that "we're going to do top 10 deals, put them in the right category, and then these other countries will fit behind."
Countries have been moving to negotiate and reach trade pacts with Washington to avoid further tariff hikes following a 10 per cent levy Trump imposed on most trading partners in April.
Wall Street's major indexes bounced on hopes for deals with China and others. The broad-based S&P 500 hit a new record in a stunning comeback from lows in April, while most stock markets rose in Europe and Asia indexes were mixed.
The White House suggested Thursday that the Trump administration could extend the July deadline.
Press secretary Karoline Leavitt told reporters Thursday: "Perhaps it could be extended, but that's a decision for the president to make."
She added: "The deadline is not critical."
"The president can simply provide these countries with a deal if they refuse to make us one by the deadline," she said.
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