China and US agree to ease trade curbs in rare earths and tech exports

China has disclosed fresh details of a trade pact with the United States that will ease some export restrictions, according to a statement by Beijing’s Commerce Ministry. Under the new understanding, China has agreed to fast-track export licences for rare earths and other controlled materials, while the US will roll back a suite of its own restrictions on Chinese exports. According to the ministry’s brief statement, Chinese officials will carefully examine and authorise applications for items covered by export-control laws . These approvals are expected to include magnets and other critical components vital to electronics, renewable energy, and defence industries. Observers, however, note that the exact categories beyond magnets that will see eased curbs remain unspecified. US and China agree on the cancellation of some restrictive measures In tandem, the US administration has pledged to rescind various existing measures that had been targeting Chinese exports. A spokesperson for Beijing’s commerce department said the US will “correspondingly cancel a range of existing restrictive measures imposed against Beijing,” though they did not elaborate on the exact list or timeline for lifting each measure. “China will review and approve the export applications of controlled items that meet the conditions in accordance with the law,” said China’s Ministry of Commerce in a statement released on Friday. “It is hoped that the United States and China will meet each other halfway …continuously enhance consensus, reduce misunderstandings, strengthen cooperation, and jointly promote the healthy, stable and sustainable development of China-US economic and trade relations.” – China’s Ministry of Commerce. Few specifics were given beyond the broad strokes, prompting some experts to caution against celebrating too soon. Alfredo Montufar-Helu, senior advisor at think tank The Conference Board’s China center, described the statement as “encouraging” but urged restraint, pointing out that both sides are treating rare earths as a high-stakes bargaining chip for negotiations yet to come. This announcement follows remarks by US President Donald Trump on Thursday, who noted at a White House gathering that “we just signed with China yesterday.” A White House aide later clarified that the two countries had reached “an additional understanding of a framework to implement the Geneva agreement,” referring to the mid-May Geneva talks. Earlier this month in London, top trade envoys, US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, hammered out the initial implementation plan during two days of intense negotiations. Experts warn firms on both sides to remain cautious Those discussions aimed to stabilise tensions after both sides accused the other of dragging its feet; Washington complained Beijing was slow to loosen its rare earths export curbs, while China objected to American tech restrictions and visa revocations for students. That preliminary accord had already called for a 90-day pause on most tariffs each country levied on the other and the rollback of some other punitive steps. Friday’s update seems designed to build on that truce by specifying how and when trade in strategic minerals and technologies will flow more freely. Still, Montufar-Helu warns the overall impact may prove limited. “Since both sides consider rare earths as a crucial bargaining chip in future negotiations, I’d expect trade in these minerals to stay somewhat constrained.” – Montufar-Helu Indeed, until Beijing publishes clear guidance on which export controls will be relaxed, and until Washington lists the precise measures it plans to remove, companies are likely to remain cautious in their planning. For now, firms on both sides will be watching closely for official regulations and implementation dates . If the promises made in Beijing’s statement materialize into concrete policy, manufacturers from consumer electronics giants to electric vehicle producers could breathe easier knowing vital components may soon move more freely between the world’s two largest economies. However, without a detailed roadmap, lingering doubts over the pace and scope of these changes may well temper any immediate surge in trade. Your crypto news deserves attention – KEY Difference Wire puts you on 250+ top sites

Source: Cryptopolitan