China x US

The United States and China have reached a breakthrough in their ongoing trade dispute, finalising a framework agreement that signals a major step toward de-escalating tariff tensions between the world’s two largest economies.

China’s Ministry of Commerce confirmed on Friday that both sides had “further confirmed the details of the framework” following talks held earlier this month in London. The deal follows a previous consensus reached in Geneva in May, where both countries agreed to lower retaliatory tariffs on each other’s goods temporarily.

Under the newly finalised framework, the United States has agreed to lift a range of restrictive trade measures, while China will begin reviewing and approving applications for the export of items currently under export controls — particularly those related to rare earth elements, which are critical for high-tech manufacturing and defence.

“It is hoped that the United States and China will meet each other halfway,” a spokesperson for China’s Ministry of Commerce said, expressing optimism over renewed cooperation.

A senior White House official also confirmed to AFP yesterday that the Trump administration and Chinese officials had “agreed to an additional understanding for a framework to implement the Geneva agreement.” President Donald Trump had earlier mentioned at a public event that Washington had “just signed” a deal with China, though he offered no further details at the time.

The resolution addresses key concerns from Washington, particularly regarding rare earth supplies — a vital component in electric vehicles, data storage, and military equipment. China, which controls a significant share of the global supply, had recently begun requiring export licences for rare earth shipments, a move widely seen as retaliation for steep U.S. tariffs.

While Beijing has now committed to a legal and transparent review process for such exports, the U.S. has reciprocated by agreeing to cancel a number of trade restrictions targeting Chinese imports.

The agreement also brings hope of defusing wider global trade anxieties. The Trump administration had previously imposed a blanket 10 per cent tariff on most trading partners while threatening steeper levies on dozens of economies. Though those higher tariffs were temporarily paused during negotiations, the White House has now hinted that a July deadline for implementing them could be extended further, depending on ongoing diplomatic progress.

The framework represents a cautious but significant step toward restoring stability to U.S.–China economic relations, which have seen years of strain due to trade imbalances, technology access, and geopolitical tensions.