Metals & Mining Theme, Energy Transition, LNG, Natural Gas, Crude Oil, Chemicals, Non-Ferrous, Ferrous, Renewables, Carbon, Emissions
June 27, 2025
China, US establish trade framework for 'controlled item' exports, such as rare earths
HIGHLIGHTS
China to review and approve export applications for 'controlled items'
US to cancel restrictive measures against China
China has confirmed the establishment of a new trade framework agreement with the US, under which China will review and approve export applications for controlled items, such as rare earth metals.
"After the London talks, the teams [from] China and the US maintained close communication. Recently, with approval, the two sides further confirmed the details of the framework," a Chinese Ministry of Commerce spokesperson said June 27. "China will review and approve the export applications [for] controlled items that meet the conditions in accordance with the law. The US will cancel a series of restrictive measures taken against China accordingly."
China has imposed strict controls on exports of rare earths and other metals, where it is a key supplier, raising concerns about shortages for some manufacturers. The latest statement from the ministry follows a US announcement and is an encouraging sign of easing bilateral tensions.
"It is hoped that the US and China will meet each other halfway [and] follow the important consensus and requirements reached by the two heads of state on June 5," the spokesperson said.
China and the US will continue to build consensus, minimize misunderstandings, strengthen cooperation and work together to promote the healthy, stable, and sustainable development of their economic and trade relations, according to the spokesperson.
US announcement
US President Donald Trump said June 26 that the US and China had reached a trade "deal" after two days of negotiations in London.
Media reports cited a White House official as saying that the US and China had "agreed to an additional understanding for a framework to implement the Geneva agreement," referring to the trade talks held in May.
Chinese tariffs on US goods will be 10%, as announced in May, while US tariffs on Chinese goods will be around 55%, including previous duties, according to a White House official.
The 55% includes a 20% tariff targeting fentanyl and 10% reciprocal tariffs, along with 25% from other pre-existing duties.
