Tentative US–China Trade Truce Reached, Rare‑Earth Access Included

Senior US and Chinese officials said on Wednesday that they have drawn up a new structure to revive the bilateral trade truce after two days of intense talks.

Representatives from both sides said the agreed structure is to reinstate the terms agreed in Switzerland last month, which include tariff cuts and the resumption of China's export of major critical minerals.

This plan will now be presented to US President Donald Trump and Chinese President Xi Jinping for their final approval and endorsement.

US Commerce Secretary Howard Lutnick described how the agreement is supposed to relax China's limits on rare earth minerals and magnets. "Also, there were a number of measures the United States of America imposed when those rare earths were not arriving," he said. "You can expect those to be removed, kind of as President Trump described: 'In a balanced way.'"

China enjoys a stronghold on global production of rare earth elements—vital for the production of smartphones, consumer electronics, and electric cars. It has employed this leverage in the past with trade tensions by restricting deliveries to international markets.

Conversely, the US has imposed export controls that barred China from accessing American technology like advanced semiconductors and Artificial Intelligence components.

We've come to an agreement on a framework to put the Geneva consensus into effect," Lutnick said to journalists. "After the presidents sign it off, we then will pursue putting it into effect."

These recent developments follow a recent telephone conversation between President Trump and President Xi, when the leaders spoke about lowering trade tensions.

Lutnick reaffirmed, "We've come to an agreement to execute the Geneva consensus and the appeal between the two presidents. The idea is we're going to go back and talk to President Trump and ensure he's okay with it. They're going to go back and talk to President Xi and if that is okay, then we will execute the framework.

China's Vice Commerce Minister Li Chenggang also confirmed the progress, saying, "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 5 and the consensus reached at the Geneva meeting."