China and the US agree on a framework to reduce export controls

U.S. Commerce Secretary Howard Lutnick announced Tuesday that after two days of rigorous negotiations in London, U.S. and Chinese officials had reached an agreement on a framework to restore their trade truce and end China’s export restrictions on rare earth materials and magnets.

The framework puts “meat on the bones” of an agreement made in Geneva last month to reduce retaliatory tariffs that had stalled over China’s restrictions on vital minerals exports, Lutnick told reporters. He added that some recent U.S. export limitations will be lifted as part of the agreement.

“We have reached a framework to implement the Geneva consensus and the call between the two presidents,” Lutnick stated. According to the plan, we will return and speak with President Trump to ensure his approval. They will speak with President Xi again to get his approval, and if he does, we will put the framework into effect.

Leading U.S. and Chinese economic leaders were attempting to reach an agreement that would relax the conflicting export restrictions that had threatened to derail the Geneva agreement that reduced tariffs from triple-digit levels.

A trade framework has been agreed and will be presented to Chinese and American leaders, according to Li Chenggang, China’s vice commerce minister, who gave the same briefing.

“The two sides have, in principle, reached a framework for implementing the consensus reached by the two heads of state during the phone call on June 5th and the consensus reached at the Geneva meeting,” Li stated to reporters.

According to Lutnick, a “fundamental” component of the framework deal will be the resolution of China’s export limitations to the United States on rare earth materials and magnets.

“Also, there were a number of measures the United States of America put on when those rare earths were not coming,” Lutnick stated. “You should expect those to come off, sort of as President Trump said, in a balanced way.”