China confirmed on Friday (27) the terms of trade negotiation with the Trump government, which includes a deal for Beijing to accelerate exports of essential minerals to the United States and for Washington to suspend recent export controls over China.
“China will analyze and approve the export requests of controlled items,” the China Ministry of Commerce said in a statement. “And the United States will corresponding a series of restrictive measures that have taken against China.”
One of Washington’s main priorities in Beijing negotiations was to ensure the supply of rare land, crucial metals for the production of electric batteries, wind turbines and defense systems.
The Chinese government’s demonstration was made a day after US Secretary of Trade, Howard Lutnick, Bloomberg News that the United States would “overthrow” its export controls as soon as China started delivering rare land minerals.
It is unclear if the agreement announced now is the same as mentioned by President Donald Trump at an event on Thursday (26) at the White House. The Ministry of Commerce said Chinese and American commercial negotiators “have maintained a close communication” after gathering in London on June 9 and 10. The two parts had already met in Geneva in May.
The meetings were held to stabilize the ties between the two superpowers and to ask for a truce in a growing trade war, in which the two sides imposed very high tariffs on each other’s products.
It is not yet known whether the suspension of export controls on both sides will facilitate the way for broader business negotiations on key issues that frustrate the Trump government, how to make China significantly buy more American products and get more US companies to have access to the Chinese economy.
Although China has stated that it will not retreat in a trade war with the US, analysts said it is in Beijing’s interest to reach a broader deal. The Chinese economy is still slow due to a real estate crisis and a drop in consumer confidence.
‘It depends on China’
US Treasury Secretary Scott Bessent said yesterday that he sees a reduction in tension with China and that Americans want to see if the Asian country wants to be “a good commercial partner.” The statement was made in an interview with Fox Business. “It will all depend on the Chinese, but I believe that the bass of commercial tensions will be under control. I believe they want to be a responsible partner,” he said.
Bessent argued that the US does not want to “separate” from China, but that the country was the only one to retaliate the fees imposed by Washington in April. According to him, 20% rates on Fentanil in China remain in force, totaling 30% of overcrowders for Beijing. He also mentioned that many countries “are feeling pressured with tariff negotiations” and that management needs to reduce commercial risk.
