According to President Donald Trump, in an effort to end a trade war between the world’s largest economies, the US and China have signed a trade agreement.
Trump, who was speaking at a White House event late on Thursday, did not provide further information. “We just signed with China the other day.
According to a White House official, “China and the administration reached an additional understanding for a framework for a framework to implement the Geneva agreement” after talks took place between the two nations in the Swiss capital last month.
The official said the agreement is “about how we can implement expediting rare earths shipments to the US once more.”
The agreement comes in response to the Geneva agreement, which enabled China and the US to postpone significant tariff increases by 90 days as they sought a more expansive trade agreement.
The later discussions in London provided the framework for negotiations, and Trump’s mention of a formalized agreement appeared to have been reached.
The deal had been “signed and sealed,” according to Commerce Secretary Howard Lutnick, who spoke to US media on Thursday. Lacking any further information, Lutnick declined to provide any details about the deal.
On Friday, China confirmed details of the agreement, saying it would approve export requests for controlled substances in accordance with the law but did not mention rare earths.
The teams from both sides have maintained close communication following the talks in London, according to a statement from China’s Ministry of Commerce.
Both sides recently confirmed the details of the framework, according to them, adding that China “will review and approve applications for the export control items that comply with the law” in accordance with the law.
A number of restrictive measures against China will also be lifted by the US side.
Beijing had agreed to end all non-tariff countermeasures against the US since April 2, despite it not knowing how some of those measures would be reversed during the Geneva discussions.
China had suspended exports of a wide range of crucial minerals and magnets as a result of its retaliation against the new US tariffs, putting in a wrench in the supply chains of global automakers, aerospace manufacturers, semiconductor companies, and military contractors.
The Trump administration instituted export controls in response to the export restrictions, which stopped China from exporting semiconductor design software, aircraft, and other products.
According to two people with knowledge of the situation, China reportedly gave temporary export licenses to the top three US automakers in early June as supply chain disruptions started to appear as a result of export restrictions on those materials.
Source: Aljazeera
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