In a significant development, China and the U.S. have agreed to a trade framework that promises to lift export controls and enhance the flow of critical minerals between the two nations.
China Enhances Trade Relations with U.S. by Easing Export Restrictions
China Enhances Trade Relations with U.S. by Easing Export Restrictions
Newly confirmed trade framework signals improved Sino-American relations, particularly regarding rare earth minerals.
On June 27, 2025, China's Ministry of Commerce announced the confirmation of a new trade framework with the United States, including an expedited export of crucial rare earth minerals to American markets. The agreement also entails the lifting of certain restrictions on U.S. goods entering China, as part of ongoing negotiations aimed at mitigating the ongoing trade disputes between the two economies.
In a statement, the Ministry indicated that China would actively review and approve applications for the export of previously controlled items. In reciprocation, the U.S. plans to roll back various restrictive measures it had placed on Chinese imports. These remarks were echoed by U.S. Commerce Secretary Howard Lutnick, who noted that the dismantling of export controls would commence once China ramped up its deliveries of rare earths.
While there is ambiguity about whether this agreement aligns with President Trump's recent claims of finalizing a trade deal, it reflects ongoing dialogues between Chinese and American trade negotiators. Meetings in London on June 9 and 10, as well as prior discussions in Geneva earlier in May, showcased efforts to stabilize relations, which have been strained due to escalating tariffs imposed by both countries.
The backdrop of these negotiations includes a recent slowdown in Chinese rare earth exports to the U.S., which prompted the Trump administration to impose countermeasures restricting U.S. exports of ethane, jet engines, and chip software to China. These measures are likely to be among those Beijing hopes will be rescinded in light of its commitment to increase rare earth exports.
Interestingly, this trade development follows China's recent move to tighten control over two chemicals used in the production of fentanyl—an action perceived as a conciliatory gesture amid ongoing U.S. concerns regarding its role in the opioid crisis.
As the trade landscape becomes more fluid, it remains uncertain whether this framework will facilitate broader negotiations addressing deeper issues, such as improving Chinese purchases of American goods and enhancing U.S. companies' access to China's market. Despite affirmations of resilience in the face of trade tensions, experts suggest that a broader agreement is in China's economic interest, especially considering its current challenges with sluggish growth driven by a property market downturn and faltering consumer confidence.
Berry Wang contributed to this report. David Pierson is an experienced journalist focusing on China’s international relations and economic engagement.
